GBPUSD Faces Resistance As UK Consumer
GBPUSD reversed higher yesterday after the fall below 1.30 this week, but buyers face resistance above, at 1.30 and 1.3030 initially. The UK economy is still in a period of weakening further, as the Manufacturing and Services PMI reports showed yesterday, which has turned the BOE dovish.
GBP/USD Chart Weekly – Buyers Face MAs Above
The UK’s October PMI data reflected a slowdown across both services and manufacturing sectors, with all indices falling short of expectations. The composite PMI dropped to 51.7 points, an 11-month low, driven by weaker service activity (51.8) and a significant decline in manufacturing output (50.9). Both sectors are at their lowest levels in several months, indicating softer economic momentum. The lower-than-expected results suggest that UK growth may be losing steam as businesses face ongoing challenges, raising concerns about the strength of the recovery.
With the GBP/USD dropping to 1.29 this week and the Bank of England turning dovish due to lower UK inflation, the pair’s trend has shifted bearish in October. The U.S. economy’s strength contrasts with the UK’s sluggish performance, as highlighted by recent Services and Manufacturing PMI data, which showed near stagnation. The GBP/USD has fallen over 5 cents in October, reaching 1.2907 on Wednesday. Although the pair attempted a corrective recovery towards 1.30, further declines are likely due to weak UK fundamentals.
GfK Consumer Confidence for October
GBP/USD Live Chart
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