- Summary:
- GBPUSD continues today the rebound from the monthly lows as the risk appetite returns to markets. On the data front, the United States Manufacturing PMI
GBPUSD continues today the rebound from the monthly lows as the risk appetite returns to markets. On the data front, the United States Manufacturing PMI came in at 49.8, topping the expectations of 49.6 in June. Earlier today the Private payrolls rose by 2.369 million in June, below the forecasts of 2.5 million according to ADP. The May ADP figures, in a big surprise, revised higher to 3.065 million from a job loss of 2.76 million. Jobs added to the leisure and hospitality sectors which were the sectors that lost the most jobs during the coronavirus lockdown. The Challenger Job Cuts came in at 170.219K in June below the previous month of 397.016K.
The UK Manufacturing Purchasing Managers’ Index (PMI) came in at 50.1 in line with forecasts and at the same level as the previous month. Pound didn’t capitalize on the relief plan announced from Prime Minister Boris Johnson yesterday as it was widely expected. The UK house prices fell for the first time since 2012. Nationwide’s house price index in June came down 0.1% year-on-year, below the expectations of 1%, after increasing 1.8% the previous month. The house prices fell by 1.4% month-on-month, taking into account seasonal changes, after a drop of 1.7% the last month, the expectations were for a -0.7% drop.
Brexit uncertainty continues to weigh on GBP and will be the primary driver of the pair in the upcoming months. The rising number of new coronavirus infections in the UK also weigh on Pound. Leicester will be excluded from the re-opening on the 4th July, with non-essential shops to close from today, amid fresh concerns about a rise in new infections.
GBPUSD Price Daily Technical Analysis
GBPUSD is 0.33% higher at 1.2442, reversing the morning session losses and now is approaching the 100-day moving average after it managed to break above the 50-day moving average. Today the technical outlook has improved while a credible break above the 100-day moving average might be the beginning of a new leg higher.
On the upside, the immediate hurdle for the GBPUSD stands at 1.2445 the daily high. The next resistance would be met at 1.2467 the 100-day moving average. A successful break above 1.2467 is likely to pave the way for a move to 1.2537 the high from June 24.
On the flip side, first support stands at 1.2359 the daily low. In case the pair breaks below the 1.2359 support level, the GBPUSD could retreat towards 1.2259 the low from June 30. The next support zone would be met at 1.2198 the low from May 28 trading session.
GBPUSD Daily Chart
