On Wednesday, GBP/USD experienced a further decline, reaching a ten-week nadir and approaching 1.29. UK and US PMI data are anticipated on Thursday, and central bankers from the Bank of England and Federal Reserve are scheduled to address the public.
Due to a widespread Greenback recovery and expectations of lower UK PMI readings in October, the Pound Sterling depreciated during Wednesday’s trading session.
It is projected that the UK’s Services PMI will experience a minor decrease to 52.2 from 52.4 in October. US PMI predictions are mixed, with Manufacturing PMI anticipated to rise to 47.5 and Services PMI projected to decline to 55.
GBP/USD Daily Chart
GBP/USD Price Forecast
The GBP/USD currency pair’s bearish momentum has persisted, resulting in a decline to the level of 1.2910, as sustained downward pressure continues to influence the market. The pair recently broke below the 50-day exponential moving average (EMA), which is presently situated at 1.3079, indicating that bears maintain control of the market. The subsequent critical support level to monitor is the 200-day EMA, located at 1.2847. A violation below this level could potentially signal further losses, potentially leading towards the psychological level of 1.28. The recent price action exhibits a succession of lower highs and lower lows, confirming the bearish trend that has been developing since the October highs.
The Moving Average Convergence Divergence (MACD) indicator corroborates bearish sentiment, indicating potential continued selling pressure. A bounce-back is possible if the pair holds the 200-day EMA, but the overall trend suggests downside risk.
