GBP/USD could extend slide if 1.3100 support fails

GBP/USD Forecast: Pound Sterling could extend slide if 1.3100 support fails

GBP/USD dropped to its lowest level in over a week below 1.3100 on Tuesday but managed to close the day above this level. The pair trades marginally higher in the European session on Wednesday as investors await the next catalyst.

The US Dollar (USD) showed no immediate reaction to the ISM Manufacturing PMI data on Tuesday, which edged higher to 47.2 in August from 46.8 in July. The risk-averse market atmosphere, as reflected by the sharp decline seen in Wall Street’s main indexes, allowed the USD to hold its ground and forced GBP/USD to stretch lower. Read more…

GBP/USD holds steady above 1.3100 ahead of Fed Beige Book

The GBP/USD pair flat lines near 1.3110 during the early European session on Wednesday. However, the risk-off sentiment ahead of the key US events could provide some support to the US Dollar (USD) and drag the major pair lower. The US JOLTS Job Openings and Fed Beige Book are due later on Wednesday.

Data released by the Institute for Supply Management (ISM) on Tuesday revealed that the Manufacturing PMI rose slightly to 47.2 in August from 46.8 in July. This figure came in below the market consensus of 47.5. Read more…