GBP/USD peeked last Monday to 1.3043, boosted by PM May with her conservative party heading polls. But last week’s terror attack on Manchester costed the conservative party 6 points down as latest surveys indicates, and when election polls looks murky without clear hints about final results, uncertainties revolves around Sterling as election race tightens.
Apparently, question marks has been aroused regarding PM May and her qualifications to lead UK’s Ministry. As a result, GBP/USD has been on a gradual decline ladder since last week and the pair plunged to 1.2794 low today, currently trading 1.2817, below its 30-EMA (D1) at 1.2850 which signals for further dips if the pair failed to rise above 1.2850 resistance. On the other hand, greenback is showing signs of recovery as the Index peeked to 97.68 today, and has the chance to add more pressure on Sterling as U.S is set to release economic data in the after noon.
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- 1- USD – Core PCE Price Index m/m today at 12:30 PM GMT.
- 2- USD – Personal Spending m/m today at 12:30 PM GMT.
- 3- USD – CB Consumer Confidence today at 2:00 PM GMT.
Note: PCE + Personal spending are vital data for coming U.S Fed June hike.
Resistance levels: R1 1.2850 (30-EMA) , R2 1.2865, R3 1.2900 (D1)
Support levels: S1 1.2790, S2 1.2770, S3 1.2700 (D1)
Comment: The pair is trading flat between R1 and S1. Friday’s sharp selloff marks a short term topping downturn and projects declines to attack the 1.2707* retracement support point. A close under 1.2700* alerts for a larger top / downturn towards 1.2530-. Be alert for a bounce off 12707* on the first test. Corrections inside Friday’s range will likely bear flag. A close over 1.2850* is needed to boost retracements to test 1.2953* for a reversing upturn. Look forward for U.S Data today, along with it U.S Index levels. UK coming elections with its updates will impact GBP/USD levels.
MACD indicates bearish momentum
RSI Nuetral / flat