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1 Nov 2013
GBP/USD remains below 1.6000 after UK PMI
FXstreet.com (Córdoba) - The GBP/USD remains vulnerable below 1.6000 after UK Markit manufacturing PMI came in pretty much in line with market forecasts.
The October UK manufacturing PMI edged slightly lower to 56.0 from 56.3 in September (downwardly revised from 56.7) and in line with market consensus. The GBP/USD was barely unaffected by data and even though it dropped a few pips, it managed to hold above its earlier low of 1.5987.
UK PMI consistent with stronger GDP and higher rates
"With orders and production indices remaining firm the PMI is consistent with an acceleration in GDP growth in 4Q13 from the 0.8%QoQ rate recorded in 3Q13, which should keep early rate hike expectations and sterling supported, particularly against the euro", said James Knightley, analyst at ING Bank.
GBP/USD technical outlook
At time of writing, the Cable is trading at the 1.5995 area, recording a 0.2% loss Friday, on track to post its sixth daily decline in a row. From a technical perspective, Stoyan Mihaylov, analyst at DeltaStock.com notes that the outlook remains negative, for a slide towards 1.5890 low. "Initial resistance is projected at 1.6067, followed by the key area around 1.6120", says the analyst.
The October UK manufacturing PMI edged slightly lower to 56.0 from 56.3 in September (downwardly revised from 56.7) and in line with market consensus. The GBP/USD was barely unaffected by data and even though it dropped a few pips, it managed to hold above its earlier low of 1.5987.
UK PMI consistent with stronger GDP and higher rates
"With orders and production indices remaining firm the PMI is consistent with an acceleration in GDP growth in 4Q13 from the 0.8%QoQ rate recorded in 3Q13, which should keep early rate hike expectations and sterling supported, particularly against the euro", said James Knightley, analyst at ING Bank.
GBP/USD technical outlook
At time of writing, the Cable is trading at the 1.5995 area, recording a 0.2% loss Friday, on track to post its sixth daily decline in a row. From a technical perspective, Stoyan Mihaylov, analyst at DeltaStock.com notes that the outlook remains negative, for a slide towards 1.5890 low. "Initial resistance is projected at 1.6067, followed by the key area around 1.6120", says the analyst.