Pound Rebounds Ahead of Important PMI Data
GBP/USD managed to rebound on Monday, halting a three-day losing streak after bouncing off the 50-day Exponential Moving Average (EMA). This strengthening occurred as US dollar buying began to subside, giving the pound some breathing room.
Market focus now turns to the release of PMI data from the UK and US, due this Tuesday. In the UK, the September Manufacturing PMI is projected to remain at 47.0 (contraction), while the Services PMI is expected to fall to 53.5 from 54.2.
In the US, market expectations are also less positive. The Manufacturing PMI is expected to weaken to 52.0 from 53.0, while the Services PMI is expected to fall to 53.9 from 54.5. If US data disappoints, pressure on the dollar could intensify and support GBP/USD.
Technically, as long as the pound is able to stay above the 50-day EMA, the potential for a rebound remains open. However, the next direction will be largely determined by the PMI data, which will be the main catalyst in the short term. (ads)
Source: Newsmaker.id
