Cable is hanging out at a strong area of interest, and the upcoming U.S. flash PMI releases might spur a big move.
Will the support-turned-resistance level hold?
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And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
- Asian markets weighed down by slow vaccination pace, Delta concerns
- Taiwan to lower COVID-19 alert level
- Sydney lockdown to extend past July
- Australia flash manufacturing PMI down from 58.6 to 56.8
- Australia flash services PMI slumped from 56.8 to 44.2
- U.K. GfK consumer confidence index up from -9 to -7
- U.K. retail sales up 0.5% vs. projected 0.2% dip on football season
- French flash manufacturing PMI down from 59.0 to 58.1, services PMI down from 57.8 to 57.0
- German flash manufacturing PMI up from 65.1 to 65.6, services PMI up from 57.5 to 62.2
- U.K. flash manufacturing PMI down from 63.9 to 60.4, services PMI down from 62.4 to 57.8
Upcoming Potential Catalysts on the Economic Calendar:
- U.K. retail sales at 6:00 am GMT
- Eurozone flash PMI readings starting 7:15 am GMT
- Canadian retail sales at 12:30 pm GMT
- U.S. Markit flash PMI readings at 1:45 pm GMT
What to Watch: GBP/USD
It’s a break-and-retest situation, forex fellas!
Cable is sitting right on the potential support-turned-resistance zone, still deciding whether to make a bounce or a break.
Will sellers defend the ceiling?The 100 SMA is below the 200 SMA to hint that the path of least resistance is to the downside while Stochastic is already heading south. Price could follow suit since this means that selling pressure is present!
If that’s the case, GBP/USD could slump back to the swing low at 1.3570 or lower.
A break past the 200 SMA dynamic inflection point and 61.8% Fib, on the other hand, could mean that pound bulls are charging again. This could take the pair back up to the next resistance near the 1.3900 handle.
It could all boil down to Uncle Sam’s flash PMI readings, with the manufacturing and services sectors not really slated to post big improvements for July.
Still, an upside surprise might encourage traders to buy up the Greenback, so y’all better keep your eyes peeled for the actual results!