- GBP/USD jumps from record lows after US economic data reignites recession fears.
- US S&P Global PMI data was mixed, although it reignited recession fears.
- The UK S&P Global Manufacturing PMI slipped into contraction territory.
- GBP/USD Price Analysis: If it breaks above the 1.1900 level, the 1.1936 level can be tested.
The GBP/USD recovered some ground rebounding from weekly lows below 1.1800 on gloomy US economic data, which raised fears of a US recession. As a result, the USD fell, along with US Treasury yields, while most G8 currencies advanced. GBP/USD is trading at 1.1860, having hit a yearly low at 1.1716, with the major currency trading over 100 pips in reaction to the aforementioned data, while sentiment shifted positively, with US equities winning.
US and UK global PMIs were mixed; consequently, the dollar weakened
The S&P Global PMI Composite for August showed that US business activity contracted for the second month in a row. In contrast, the manufacturing PMI, although slowing down, remained in expansion territory at 51.3, lower than expected. The figures put the composite index at 45, below estimates of 47, while the services PMI slumped to 44.1, below forecasts.
Meanwhile, during the European session, S&P Global revealed that the UK Manufacturing PMI for August slumped into contraction territory, falling to 46.0, below estimates of 51.1, fueled by high energy prices across Europe. , supply chain disruptions and higher interest rates. Contrary to the US, the UK Services PMI was unchanged at 52.5, while the Composite PMI fell to 50.9.
What to watch out for
Durable Goods Orders for July will be released on the US economic docket, along with housing data, illustrating the slowdown in the US economy on Wednesday. In the UK, the CBI Distributive Trades will be released on Thursday.
GBP/USD Price Analysis: Technical Outlook
GBP/USD is rising as buyers look to test the 19th Aug daily high at 1.1935. Once GBP/USD broke above the 1.1800 figure, it was followed by the daily high of August 22nd at 1.1836. The next resistance will be the 1.1900 figure on its way to the daily high on the 19th of August. Although the pound is recovering, the Relative Strength Index (RSI) remains in negative territory, so caution is advised.
Technical levels
GBP/USD
Panorama | |
---|---|
Last Price Today | 1.1846 |
Today’s Daily Change | 0.0080 |
Today’s Daily Change % | 0.68 |
Today’s Daily Opening | 1.1766 |
Trends | |
---|---|
20 Daily SMA | 1.2088 |
50 Daily SMA | 1.2081 |
100 Daily SMA | 1.2355 |
200 Daily SMA | 1.2868 |
levels | |
---|---|
Previous Daily High | 1.1838 |
Previous Daily Minimum | 1.1742 |
Previous Maximum Weekly | 1.2148 |
Previous Weekly Minimum | 1.1792 |
Monthly Prior Maximum | 1.2246 |
Previous Monthly Minimum | 1,176 |
Daily Fibonacci 38.2% | 1.1779 |
Daily Fibonacci 61.8% | 1.1802 |
Daily Pivot Point S1 | 1.1726 |
Daily Pivot Point S2 | 1.1686 |
Daily Pivot Point S3 | 1.1629 |
Daily Pivot Point R1 | 1.1822 |
Daily Pivot Point R2 | 1.1878 |
Daily Pivot Point R3 | 1.1918 |
Source: Fx Street

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