GBP/USD: will it plummet below 200 DMA now?

By FXStreet FXStreet (Guatemala) – GBP/USD has been rejected at the 20 SMA on the 30 minute sticks and offered back and down to test the bulls commitments at the 1.53 handle for a third time in London and US markets at the start of the month.

GBP/USD down through 200 DMA

GBP/USD fell through and below 1.54 and the 200 DMA at at 1.5360 at the end of August for a third time since May, and the question is whether the price will diverge from the indicator or remain within recent ranges?

The pound has been one of the worst performing major currencies since China devalued the renminbi last month and is now trading with a negative bias after being capped at 1.5817 and falling below the support of the rising channel of July/August business.

The UK has little data to support the pound this week, while the data it did have was a negative outcome, with UK Markit CIPS manufacturing PMI that arrived 51.5 vs 52.0 exp. UK share markets also returned from a long weekend with a bearish outlook, FTSE starting out -1.0% and closing much lower at -3.0%.

GBP/USD now depends on US data

The week will focus back …read more

Source:: FX Street