The greenback was relatively calm during the Friday’s London session and the GBPUSD pair was only marginally lower in the morning, hovering around 1.3280.
The UK manufacturing PMI for May is projected to weaken slightly to 53.5 from 53.9 in April. The manufacturing sector is weakening, which could be negative for the pound.
Later in the day, the US non farm payrolls should improve to 188,000 in May from 164,000 in April, while the unemployment rate is expected to stay at 3.9%. Wage growth will most likely accelerate further and the US dollar could be bid afterwards.
The GBPUSD pair is now trading below the important level of 1.3310 and as long as it stays below, the outlook seems bearish. This is the first resistance for today’s trading, with the next selling orders located around 1.3390, where the support trend line is located.
On the other hand, bids could be located at 1.32 where the current cycle low is seen and the next buying zone could be around 1.3170. In all cases we strongly recommend to have rigorous money and risk management.
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