ADS Securities' team of analysts eye a bearish GBPUSD trading ahead UK Services PMI, as Brexit talks is about to start. Will UK economy be at risk?
5 April, ADS Securities – The Pound declined for the second consecutive session against the US Dollar yesterday amid a slower-than-expected growth in the Britain’s construction sector in March, adding to signs that the nation’s economy is losing some momentum.
GBPUSD trading ahead UK Services PMI
As of now, the price action appears to be bearish on the 1H chart, ahead of the services PMI data to be released later in the day. Moreover, the MACD indicator is trading in the negative territory, further supporting the above view. Key support is positioned at the 1.2440 level, a breach below which might trigger weakness in the pair, paving the way for the 1.2430 and 1.2425 levels as next downside targets.
On the other hand, key intraday resistance is located at the 1.2455 level, a sustained break above which might lessen the bearish pressure, paving the way for the 1.2465 where EMA 200 is trading and 1.2470 levels.
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