The Sterling extended its recovery into a second straight day, although GBP/USD is ending the day below the daily high set at 1.4017 during the European session.
The pair gave back gains following the release of February’s UK manufacturing PMI, which fell to 50.8 against market expectations of a decline to 52.2, marking the lowest reading since early 2013.
Nevertheless, intraday buying interest surged on approaches to the 1.3900 level, suggesting bears have lost interest at current levels. At time of writing, GBP/USD is trading at 1.3967 still up 0.39% on the day.
GBP/USD technical perspective
“Short term, the pair presents a mild bullish tone, as in the 1 hour chart, the price has managed to recover above a bullish 20 SMA, whilst the technical indicators have bounced from their mid-lines, indicating the pair may continue advancing,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the price has bounced several times from a horizontal 20 SMA, whilst the technical indicators are currently advancing above their mid-lines, in line with the shorter term perspective. Nevertheless, it would take an upward acceleration beyond the 1.4020 level to see a more sustainable advance during the upcoming hours that can extend up to the 1.4100 region.”
Support levels: 1.3960 1.3920 1.3875. Resistance levels: 1.4020 1.4060 1.4100.
(Market News Provided by FXstreet)
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