Cable May Test Fresh Lows Below 1.5170 Support Amid NFP Release
The GBP/USD pair reached a lower low for the week, reaching 1.5218, a level not seen since early June. Earlier in the European morning, the UK Services PMI fell down to 55.6 in August, from 57.4 in July, the lowest level in over two years, adding to the batch of tepid data coming from Britain these past weeks.
The pair saw little intraday activity, confined within the 1.5200 region.
Technically, the downside is still favored, despite the almost 600 pips straight decline, as in the 1 hour chart, the price develops below a mild bearish 20 SMA, whilst the technical indicators are turning south below their mid-lines.
In the 4 hours chart the 20 SMA continues to be the main intraday resistance, heading strongly lower now around 1.5320, whilst the RSI indicator is barely bouncing from oversold levels, around 35, and the Momentum indicator is also standing below its mid-line.
The risk of an upward corrective movement increases ahead of the weekend, yet a strong US employment report should see the pair breaking lower, with the next immediate bearish target at 1.5170.