Market players were largely caught off guard with how the dollar responded to a weak read in US ISM Manufacturing numbers, falling short of consensus at 48.5 against hopes of an improvement to 49.2, a contraction still yet less so. For today we have little of note coming out of the UK with market players likely focusing on the Fed’s Jerome Powell potentially fueling a break of June lows should we hear a hawkish tone.
Resistance
- 1.27399 – Daily Consolidation High
- 1.27001 – 20D Moving Average
- 1.26560 – 50D Moving Average
Support
- 1.26127 – Daily Consolidation Floor
- 1.25678 – Intraday Consolidation Resistance
- 1.25090 – Intraday Pullback Low
Monday’s failed attempt at a bullish breakout has GBPUSD with a long wick in daily charts looking rejected from the 20D Moving Average. Among indicators we are looking poised for a drop to oversold levels in daily stochastic though we would need to clear June’s lows before getting excited. At this point we are looking for an excuse to join the sell side with a break of 1.26127 as an entry continuing the pattern of lower lows through out June.
