GBP/USD & UK Manufacturing PMI: More pressure for the Sterling?
Today we expect a major macro data from the UK to be released at 08:30 GMT, where we'll know the Manufacturing PMI for August and analysts are expecting a slight improvement in the number from 48.2 to 49.0. There are still concerns across the board about the strength of British economy following the Brexit referendum. With that being said, there are doubts about if Q3 economic data from the UK will remain to show a solid pace.
Our technical view for GBP/USD at H4 chart is calling for a bearish triangle formation, as the Cable didn't manage to break the August 3rd highs and now it's facing a support at the 1.3066 level. With a lower than expected number, we should see a decline towards the next key support at the 1.2946 price zone, while a positive release from the UK Manufacturing PMI will make the pair crawl higher to test the 1.3261 level in a short-term basis.