GBP/USD Retreats Below 1.1500 After UK, U.S. Data
2022.11.02 03:19
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GBP/USD Retreats Below 1.1500 After UK, U.S. Data
Budrigannews.com – The trimmed intraday gains on Tuesday after the UK PMI data, while the dollar managed to shrug off early weakness following solid domestic figures and a bounce in Treasury yields.
At the time of writing, the GBP/USD pair is trading at the 1.1480 area, posting a 0.20% daily gain after peaking at 1.1566 earlier in the session.
PMI data showed the U.K. sector contracted for the fourth consecutive month as the index fell to a 29-month low of 46.2 in October, down from 48.4 in September but above the earlier estimate of 45.8.
Across the pond, U.S. recorded a slight expansion coming in at 50.2, beating the market consensus of 50 but decelerating its growth pace from its previous reading of 50.9. S&P Global reported weak demand conditions are dampening growth.
On Wednesday, the Federal Reserve will announce its monetary policy . Market participants have completely discounted the fourth consecutive 75 bps.
In addition, investors will eye the FOMC members’ economic projections, the dot plot, and any monetary policy forward guidance.
From a technical perspective, the GBP/USD pair maintains a short-term neutral outlook as indicators are turning flat on the daily chart while the price consolidates in a wide range between the 20- and the 100-day SMA. The RSI gained a slight positive slope above its midline, while the MACD prints lower green bars.
On the upside, the next critical resistance stands at the 1.1600 psychological mark. A break above could pave the way towards the 1.1625 area and the 100-day SMA, currently at 1.1710.
On the downside, immediate support could be found at the 1.1435 zone, followed by the 1.1400 area, and at the 20-day SMA currently at 1.1310.
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