- GBP/USD lost one-fifth of a percent on Wednesday.
- The schedule for Thursday is tight.
- Investors are waiting for Friday’s double PMI readings from both the UK and the US.
The GBP/USD currency pair strengthened on Wednesday, losing around one-fifth of one percent, as markets wait for a decisive push to tilt risk appetite one way or another. Markets are slowing down during the snail-paced midweek break between key data releases, and Purchasing Managers’ Index (PMI) data is the airy at the end of the tunnel this week.
With Thursday expected to be a low release day, cable investors will be focused on Friday’s S&P Global PMI data released on both sides of the Atlantic. The UK and US PMI business activity survey results for January are expected to be mixed this week, with services components expected to decline and manufacturing – although slightly – expected to improve. PMI data tends to have constrained impact unless it deviates significantly from forecasts, but survey response rates tend to be low and overall data should be taken with a pinch of salt.
GBP/USD price forecast
The GBP/USD currency pair is seeing a snail-paced, steady recovery after falling to 15-month lows near 1.2100, but bulls are struggling to push bids above the 1.2400 level. Price action has established a mighty technical support level near the 1.2200 area, but the degenerating 50-day exponential moving average (EMA) near 1.2500 is hampering the development of long legs.
