GBP/USD downside capped by 1hr 100-SMA, UK PMI eyed

By FXStreet The GBP/USD pair reverses a sharp drop to hourly 100-SMA at 1.4325 heading towards the UK manufacturing PMI release amid persistent risk-off trades in the European equities.

GBP/USD re-takes 1.4350

The GBP/USD pair trades -0.13% lower at 1.4346, aiming to test session highs at 1.4369 before the UK PMI data. A sudden buying wave appears to have gripped the cable over the last hours as traders bid up the pound on expectations of a stronger UK manufacturing sector activity report, which will be released shortly. The UK manufacturing gauge is expected to improve to 51.2 in March from 50.8 booked in February.

However, the biggest drive for the major will be today’s US labor market data. Although the jobs figures will be watched, but the main focus will be on wage price growth data. Upbeat wage numbers is expected to help reverse a part of this week’s losses in the US dollar and could suggest April/June Fed rate hike back on the table.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.4400 (round number), above which 1.4459 (Mar 30 High) would be tested. On the flip side, support is seen at 1.4320 (daily S1) below that at 1.4300/1.4294 (20 & …read more

Source:: FX Street