The GBPUSD pair quickly reversed an early European session dip to the 1.2970-65 region and refreshed session tops in the last hour, albeit lacked any strong follow-through.
November 5, GKFX – The pair met with some fresh offers and filled the weekly bullish gap following the disappointing release of the UK services PMI, coming in at 52.2 in October as compared to 53.3 anticipated and worse than previous month’s reading of 53.9.
The downtick was quickly bought into after the UK Finance Ministry Official John Glen was quoted saying that he is extremely confident on reaching a Brexit deal on financial services imminently.
The pair touched an intraday high level of 1.3028 but once again failed to build on the positive momentum and quickly retreated around 20-25 pips on the back of comments by the European Commission spokesman, saying that we are still not there on Brexit negotiations.
With Brexit headlines turning out to be an exclusive driver of the sentiment surrounding the British Pound, the upcoming release of the US ISM non-manufacturing PMI, though might influence the US Dollar price dynamics, is unlikely to produce any meaningful trading opportunities.
GBPUSD Technical Analysis
Any subsequent fall might continue to find immediate support near the 1.2965 region, below which the pair is likely to accelerate the fall further towards testing its next major support near the 1.2910-1.2900 area.
On the flip side, the 1.3030-40 region (100-day SMA) remains an immediate strong hurdle, which if cleared decisively might prompt a short-covering rally and assist the pair to aim towards reclaiming the 1.3100 handle.
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