3 Feb 2014
GBP/USD drops below 1.6400 after PMI
FXstreet.com (Córdoba) - The GBP/USD broke below 1.6400 and slumped to multi-week lows after the UK January manufacturing PMI came in lower than expected.
The Markit manufacturing PMI fell to 56.7 in January against 57.2 the prior month and 57.0 expected. The GBP/USD was hammered by data, falling from 1.6415 to a fresh 2-week low of 1.6352 in a matter of minutes. At time of writing, the GBP/USD is trading at the 1.6360 area, recording a 0.3% loss on the day.
GBP/USD levels to watch
In terms of technical levels, the GBP/USD could find next support levels at 1.6308 (Jan 17 low) and 1.6260 (Dec 18 low) ahead of 1.6234 (100-day SMA). On the flip side, resistances are seen at 1.6440 (Feb 3 high), 1.6465 (21-day SMA) and 1.6497/1.6500 (Jan 31 high/psychological level).
The Markit manufacturing PMI fell to 56.7 in January against 57.2 the prior month and 57.0 expected. The GBP/USD was hammered by data, falling from 1.6415 to a fresh 2-week low of 1.6352 in a matter of minutes. At time of writing, the GBP/USD is trading at the 1.6360 area, recording a 0.3% loss on the day.
GBP/USD levels to watch
In terms of technical levels, the GBP/USD could find next support levels at 1.6308 (Jan 17 low) and 1.6260 (Dec 18 low) ahead of 1.6234 (100-day SMA). On the flip side, resistances are seen at 1.6440 (Feb 3 high), 1.6465 (21-day SMA) and 1.6497/1.6500 (Jan 31 high/psychological level).