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5 Jun 2013
GBP/USD drifting higher to hold 1.5300
FXstreet.com (London) - GBP/USD has been handed over in the European session in the low 1.5330’s, as the negative sentiment left by the US session overnight carried over into the Asia open.
Looking ahead, US highlights include the ADP and ISM non-manufacturing for May. Markets are looking for the services PMI to rise from 52.9 to 53.1. And for the UK, TD Securities research teams said that they see upside in the UK manufacturing and construction PMIs in particular, continuing to say that upside will be limited though by the fact that the services PMI has already held up relatively well this year.
Technically speaking, GBPUSD has continued to drift higher in its corrective mode. Analysts at Commerzbank suspect that the corrective rebound will extend further to the 78.6% retracement resistance at 1.5470. “However, we
continue to view the current strength as corrective only. We will maintain
an overall negative bias while capped by the 1.5601 May high,” said Karen Jones, senior analysts at Commerzbank.
She continued to say that interim support lies at 1.5240/1.5190 ahead of key support, which remains the 1.5035/1.4997 target zone, made up of the April and the 20th of March lows as well as the 78.6% Fibonacci retracement of the March- to-May rise. Support at 1.4997 is regarded as the last defence for 1.4832, the March low.
Looking ahead, US highlights include the ADP and ISM non-manufacturing for May. Markets are looking for the services PMI to rise from 52.9 to 53.1. And for the UK, TD Securities research teams said that they see upside in the UK manufacturing and construction PMIs in particular, continuing to say that upside will be limited though by the fact that the services PMI has already held up relatively well this year.
Technically speaking, GBPUSD has continued to drift higher in its corrective mode. Analysts at Commerzbank suspect that the corrective rebound will extend further to the 78.6% retracement resistance at 1.5470. “However, we
continue to view the current strength as corrective only. We will maintain
an overall negative bias while capped by the 1.5601 May high,” said Karen Jones, senior analysts at Commerzbank.
She continued to say that interim support lies at 1.5240/1.5190 ahead of key support, which remains the 1.5035/1.4997 target zone, made up of the April and the 20th of March lows as well as the 78.6% Fibonacci retracement of the March- to-May rise. Support at 1.4997 is regarded as the last defence for 1.4832, the March low.