POUND CONTINUES TO DRIFT LOWER
The British pound has fallen to a fresh weekly against the U.S dollar, hitting 1.3229, after the United Kingdom's Construction PMI unexpectedly contracted for the month of September, with a disappointing 48.1 reading.
Trading sentiment surrounding the GBPUSD pair is currently bearish, after a series of weaker than expected UK data points in September have pushed back expectations of an October rate hike from the Bank of England.
Going forward, the GBPUSD pair may have reached the bottom-end its medium-term trading range at 1.3229. Short-term stochastic and RSI technical indicators are also in heavily oversold territory.
Price-action has subsequently recovered above 1.3250, with a pullback towards the 1.3300 region increasingly likely, as traders reassess positioning before Friday's Nonfarm Payrolls jobs report.
Key intraday GBPUSD technical support is located at the current weekly price low, at 1.3229 and the former yearly high, at 1.3215. Below the 1.3200 level, the pairs key 50-day moving average is found, at 1.3135.
To the upside, key technical resistance is found at the pairs M5 time frame 200-period moving average, at 1.3263. Above 1.3263, the GBPUSD daily pivot is located at 1.3302, with the pairs 50-hour moving average, at 1.3320.