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Technical Outlook: GBPUSD Eases After Weak UK Manufacturing Data But No Clear Direction While The Price Holds Within Daily Cloud

Cable traded within narrow range in Asia and eased to session low at 1.2936 after UK Manufacturing PMI fell to 51.1 in August, undershooting expectation at 52.0 and July’s release at 51.9.

Weak Manufacturing numbers are seen as negative factor for the near-term action which is holding within daily cloud for the fourth straight day.

The action is capped by daily cloud top / falling 30SMA which keep psychological 1.3000 intact for now and maintains negative near-term tone while the price stays below.

No clear direction while the price holds within the cloud, with the notion supported by mixed daily studies.

Extension below 1.2914 (converged 10/20SMA’s) would risk break below daily cloud base (1.2906) and daily Tenkan-sen (1.2884) break of which will be bearish.

Conversely, sustained break above daily cloud / 30SMA and 1.3000 barrier would signal fresh extension of recovery leg from 1.2773, through 1.3020 (daily Kijun-sen) towards 1.3080 (Fibo 61.8% of 1.3268/1.2773 descend.

Res: 1.2965, 1.2980, 1.3000, 1.3020
Sup: 1.2936, 1.2906, 1.2884, 1.2852

Windsor Brokers Ltd
Windsor Brokers Ltdhttp://www.windsorbrokers.com/
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.

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