GBP/USD stabilizes as UK PMI-driven Pound support meets steady US Dollar demand
GBP/USD trades around 1.3500 on Thursday, virtually unchanged on the day, after recovering earlier losses following the release of stronger-than-expected UK activity data.
The Pound Sterling (GBP) draws support after S&P Global data showed a stronger-than-expected rebound in business activity. The flash Composite Purchasing Managers Index (PMI) rises to 52 in April, well above market expectations of 49.8 and the previous reading of 50.3. A simultaneous acceleration in both manufacturing and services sectors drives the improvement. The Manufacturing PMI climbs to 53.6, while the Services PMI reaches 52, pointing to broad-based expansion. Read more…
GBP/USD Price Forecast: Tests nine-day EMA support after slipping below 1.3500
GBP/USD remains subdued for the third successive day, trading around 1.3500 during the Asian hours on Thursday. The technical analysis of the daily chart indicates a potential for bearish reversal as the pair moves below the ascending channel pattern.
However, the GBP/USD pair holds a constructive bullish bias as it stays marginally above the nine-period Exponential Moving Average (EMA) and comfortably over the 50-period EMA. This alignment of short- and medium-term EMAs below spot hints at underlying demand. The 14-day Relative Strength Index around 56 suggests positive but not overstretched momentum, allowing room for further upside while the pair remains supported on dips. Read more…
