GBPUSD: Sterling Slips on Busy Day

02 / 03 / 2018
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The pound moved lower on Friday morning and was trading near 6 week lows during the London session as the GBPUSD pair traded around 1.3765, some 0.15% weaker on the day.

Later in the day, the construction PMI for the month of February will be released and should tick higher marginally to 50.5. Thursday’s manufacturing PMI slipped a notch to 55.2 from 55.3 previously.

More importantly, the BoE governor Mark Carney is due to speak about the evolution of money and the emergence of cryptocurrencies in London, which might influence cryptocurrencies and also sterling.

Additionally, the United Kingdom Prime Minister Theresa May will speak about Britain’s post-Brexit relationship with the European Union, in London. This speech will be closely watched and bigger movements are expected during her remarks.

Cable is hovering near February lows, which are around 1.3760 and if broken, further weakness toward 1.37 could occur. On the other hand, the resistance is seen at 1.3850 and as long as the pound trades below, the short-term outlook is bearish. In all cases we strongly recommend to have rigorous money and risk management.

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