fundamental News - GBP/USD

GBP/USD weakness continues, the pound sustained a 2nd straight losing week and it is trading near 1.38. The upcoming week has four releases, including monthly GDP.

UK manufacturing remains a bright spot in the economy, as Manufacturing PMI rose to 55.1, up from 54.1. Construction PMI showed growth, with a reading of 53.3, up from 49.2. The services sector showed improvement but remained in contraction, with a reading of 49.5. The 50-level separates contraction from expansion. Shop prices fell by 2.4%, the sharpest drop in 9 months, as shop owners tried to entice Covid-weary consumers with sharp discounts

Technical analysis
The GBP/USD pair trades at its lowest in three weeks, not far from a daily low at 1.3777. In the daily chart, the pair has slid below its 20-SMA, which partially lost its bullish strength, but maintain above 50-SMA support. Technical indicators head sharply lower within negative levels, indicating further declines ahead. In the near-term, and according to the 4-hour chart, the risk is also skewed to the downside. The pair is hovering around its 200 SMA while below the shorter ones, as technical indicators consolidate near oversold readings.



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