UK Manufacturing Up Next! Will GBP/USD Finally Decide Which Side Of 1.30 To Go?
Skerdian Meta • 1 min read
GBP/USD has been hanging around 1.30 for the last few days. It has tried to detach itself from it several times at the top side as well as at the bottom. Yet, it seems like forex traders are attracted to the big level at 1.30 like a moth to light.
Neither of them has the guts to take the price more than 200-300 pips in either direction. They have tried and given up quite a few times, putting us back here.
I don’t really blame them, Brexit and other political uncertainties keep looming above the Quid. It is the first time this forex pair has been trading around these levels in more than 20 years, after the decline which followed the Brexit referendum.
Perhaps the UK manufacturing numbers, which are due to be released in a little while, might give this pair direction. This data has missed five times out of five this year, four of which were negative numbers, which means that this sector has been contracting. If we get another negative number today then this sector is officially in contraction.
I don’t see this piece of data taking us beyond the two moving averages which have confined this pair lately and which stand at 1.2850 and 1.3250. If we do get there after today’s manufacturing numbers, which I highly doubt, then I would try to faint that move and take the opposite direction.
This is because we have many important economic releases from the UK in the coming days and next week, so this forex pair will probably stick around 1.30 until then.