GBPUSD: Cable Wobbly Ahead of Important Data

05 / 03 / 2018
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Sterling was trading slightly lower on Monday morning and the GBPUSD pair was seen hovering around 1.3780 during the London session, some 0.10% weaker on the day.

Later in the session, the most important PMI will be released, with the services sector expected to grow marginally in February to 53.3 from 53.0 in January. This could be supportive for the pound.

The US calendar will offer the non-manufacturing ISM for the same month, which should weaken slightly to 58.9 from 59.9 previously. However, the US dollar stopped reacting on macro data is driven mainly by political concerns, including possible trade wars or widening US deficit.

The first intraday support is located around previous lows at 1.3770 and if not held, cable might decline to the March lows near the 1.37 mark.

On the other hand, the resistance for today’s trading is seen at 1.3870 and as long as the pair trades below, the short-term outlook appears bearish. There is a small bullish divergence on the four hour chart, which might support the cable further. In all cases we strongly recommend to have rigorous money and risk management.

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