GBP/USD set to rise when the winds calm as sterling weathers stormy seas
|GBP/USD has been holding onto its impressive recovery as sterling weathers several storms. ISM Services PMI is key to further gains, according to FXStreet’s Analyst Yohay Elam.
Bulls are gaining ground
"In the UK, worries about supply chains are concentrated around the petrol pump. The British army is still helping deliver gasoline to stations but the worst of the crisis could already be in the rearview mirror. If headlines of queues dwindle, sterling could shine.”
“Former UK Chief EU Negotiator David Frost reiterated the UK's position that the Northern Irish protocol agreed with the EU is unworkable. Brussels insists on following the accord to the letter. Once again, the pound's ability to rise despite the worsening clash is a sign of strength.”
“The Prices Paid component of the ISM Services Purchasing Managers' Index (PMI) for September is set to grab attention more than the Employment component. A troubling read in the ISM Services PMI could boost the safe-haven dollar and test GBP/USD's resilience. However, sterling seems well-positioned to hold up once again.”
“Resistance awaits at 1.3645, Monday's high point. It is followed by 1.3695, which capped GBP/USD in late October.”
“Support is at 1.3580, the daily low, followed by 1.3525, a stepping stone on the way up.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.