GBPUSD: Sterling Slides in Risk-Off Trading

02 / 07 / 2018
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Greenback surged broadly on Monday and the GBPUSD pair was trading 0.35% weaker during the London session, seen hovering around 1.3160.

In addition, the pound was also weakened following a report by PricewaterhouseCoopers and the Confederation of British Industry which revealed Brexit insecurities. According to the quarterly survey of the British financial services sector, many executives and a third of banks surveyed were “not so confident” of implementing Brexit plans by March 2019.

Later in the day, the manufacturing PMI for June is due and should slow to 54.0 from 54.4 scored in May. Another bad news for sterling.

The US session will bring the manufacturing ISM index for June and investors anticipate a slowdown here as well. The index is seen at 58.1 from 58.7 in May.

The pair is dropping again below the important resistance zone between 1.3180 and 1.3220. As long as the pound trades below, the immediate bearish trend is still intact. The support for today’s trading is around 1.3100.

However, there is a bigger MACD divergence forming on the daily chart, which could send sterling higher, but the price needs to close above the mentioned resistance zone.

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