The depth of that fall in the pound after mftg PMI may be slightly overcooked but it shows how vulnerable the pair is right now. It also higlights that, despite protestations to the contrary, our mftg sector has a way to go before it can punch its weight let alone anything above it.
We can expect some caution now ahead of NFPs but any excuse to buy USD and we’ll see GBPUSD tumble and I agree with Ryan ,unsurprisingly, that the rally-sell strategy is still the way to go. That’s if we get one.
Bids lined up at 1.6800-10 with other buying interest on the way down should it be a straight run lower. 1.6812 is the 76.4% fib retracement of 1.6696-1.7186
EURGBP has now cleared out the 0.7940-50 offers with more looming at 0.7965 and larger from 0.7975 into 0.8000-10 and the pair will continue to have influence.
