Pound Sterling Falls as UK Business Growth Weakens.
Pound Sterling slips as UK business growth disappoints.
FUNDAMENTAL OVERVIEW:
The Pound Sterling (GBP) weakens against major peers on Wednesday as UK business activity growth slows in September. Flash S&P Global Composite PMI slipped to 51.0, below estimates of 52.7 and August’s 53.5, signalling only modest expansion. Manufacturing contracted further, while services growth also cooled, raising concerns over broader economic momentum.
The slowdown reflects persistent weakness in the manufacturing sector, with PMI falling to 46.2 versus expectations of 47.0, while the Services PMI eased to 51.9 from 54.2. The report also highlighted ongoing job losses and reduced overseas demand amid trade tensions, exacerbated by U.S. tariffs.
Forex Market Analysis – US Dollar Strengthens as Fed’s Cautious Tone Pressures Euro, Pound and Yen Ahead of Key Economic Data
Cooling labor market conditions and softer global demand may push the Bank of England (BoE) toward a dovish stance. The BoE kept rates unchanged at 4% last week, maintaining its cautious easing approach, as inflation still sits well above the 2% target. Officials expect price pressures to peak near 4% in September, with BoE Chief Economist Huw Pill expressing confidence in near-term relief.
GBP/USD TECHNICAL ANALYSIS CHART:
Technical Overview:
GBP/USD is trading within a down channel.
GBP/USD is moving below all the Moving Averages (SMA).
The Relative Strength Index (RSI) is in Selling Zone, while the Stochastic oscillator suggests a Negative trend.
Immediate Resistance level: 1.3583
Immediate support level: 1.3453
Latest Market Update – Fundamental Analysis and Technical Analysis
HOW TO TRADE GBP/USD
After a sharp rise, GBP/USD faced rejection and pulled back to the support zone, where it briefly rebounded. However, the pair failed to sustain momentum and encountered resistance at the same level, triggering another decline. Currently trading near a key support level, a break below could open the door for further downside.
