Title : GBP/USD: Rejection at 1.1500 recalls sellers ahead of Truss, US data
Oct 5, 2022 4:59 AM ET
The GBP/USD is correcting from three-week highs at 1.1495, breaking a six-day uptrend, as the U.S. dollar jumps back into bids amid broad risk aversion.
Investors are on edge as geopolitical tensions between Russia and Europe escalate over the Ukraine conflict.The European Union (EU) backs sanctions against Russia, including oil price caps. The flight-to-safety team persists, underpinning the dollar's safe-haven appeal.
Investors refrain from directional bets on the pound ahead of UK Prime Minister Liz Truss' speech to the Tory party. Meanwhile, cable finds some solace in the upward revision of the latest UK global services PMI to 50.0 in September.
Attention now turns to the US ADP employment and ISM services PMI, due later in the NA session, for further trading opportunities.
On the daily chart, GBP/USD is approaching the 21-day horizontal moving average (DMA) at 1.1297 on its pullback from higher levels.
The next downside target is seen at 1.1250, the psychological level.
However, the 14-day Relative Strength Index (RSI) remains above the midline and keeps the uptrend intact.
On the other hand, the downtrend line resistance at 1.1662 remains on buyers' radar once the 1.1500 level is breached.