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Sterling Strengthens On Weaker U.S. Dollar, Services PMI Eyed

Published 12/05/2016, 07:44 AM
Updated 03/09/2019, 08:30 AM

GBP/USD is on bullish momentum for the third consecutive session. The pair rallied on Thursday from 1.2502 lows till Friday's 1.2737 39-days-fresh-highs taking advantage of weak US dollar performance last week as US index plunges 100.70 low after a hysterical increase resulted in 102.12 highs (14 years best performance). GPB/USD opened today at 1.2679, clocked Friday's high at 1.2737 too, but failed to guard the 1.27 level as the pair drops to 1.2625 low, currently trading at 1.2698 intraday.

GBP/USD awaits today local data, service PMI scheduled to be released at 9:30 AM GMT today which will might bring new higher levels that the pair has lacked on weak performance after Brexit, especially that US dollar seems vulnerable these days. Traders should set their eyes on second resistance located at 100 SMA 1.2835, which might alarm next resistance level. In the opposite scenario, 50 SMA located at second support at 1.2560 will trigger third support level.

Trend: bullish

Key levels to watch: Weekly Pp 1.2619

Resistance levels: R1 1.2748 , R2 1.2835, R3 1.2910

Support Levels: S1 1.2618, S2 1.2560, R3 1.2476

Remark: GBP/USD is considered bullish and on recovery track after long periods or bearish. UK service PMI today will give a better outlook for the cable trend. Also US ISM Non-Manufacturing PMI today scheduled at 3:00 PM GMT to be taken into consideration.

Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.

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