GBP/USD slips to a low of 1.2653 on the day
Price fell below both the 100-hour MA (red line) and 200-hour MA (blue line) earlier today as sellers seized near-term control and they haven’t looked back since. Now, we’re seeing price hit session lows ahead of UK data to follow in a few minutes.
I doubt the data will have a material impact on the pound but if we do see a significant miss on the manufacturing PMI print, it could prompt a bit of a response I reckon.
For now, cable is running into support around 1.2645-50 with further support only seen closer to 1.2600-10 next. Sellers have established a bearish bias again and with Brexit focus set to come back into the picture over the next few weeks, it’ll be tough to see the pound gather any solid momentum in the short-term.