GBP/USD Loses Patience On Brexit Impasse, White Smoke Needed As New Steam

After Markit upgraded the UK’s MAnufacturing PMI to 55.6 points in November – reflecting robust growth – the focus shifts to the all-important ISM Manufacturing PMI. The forward-looking indicator is set to edge down from the highs, and continue pointing to growth. It serves as the first clue toward Friday’s Nonfarm Payrolls figures.

Overall, Brexit remains in the spotlight, and the longer talks last, the more vulnerable the pound. Other factors are mostly favorable for cable.

GBP/USD Technical Analysis

(Click on image to enlarge)

Pound/dollar has bounced off the 50 Simple Moving Average on the four-hour chart once again but has momentum is turning negative. The break above 1.34 proved short-lived. All in all, bulls have an advantage, but not a robust one, especially while GBP/USD trades below the broken uptrend support line that accompanied it.

Some resistance awaits at 1.3380, a temporary cap during November. It is followed by 1.3397, the previous peak, and by 1.3407, the new one. The next level to watch is 1.3495, September’s high point.

Some support is seen at 1.3330, where the 50 SMA hits the price. It is followed by 1.3310, a stubborn cap early in November, and by 1.3275.

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