Despite the 'Sad' Market, GBP/USD Still Reaches Latest 11-Week High


 Although the market movement was slow on Thursday yesterday, the Pound currency managed to reach a new high against the US dollar which moved gloomy when the United States (US) market was on holiday in conjunction with Thanksgiving.

In the European session yesterday published UK manufacturing and services PMI data for November saw positive readings.

The manufacturing sector data increased 46.7 points compared to the forecast of 45.0, while the services data has passed the stable level to 50.5 points compared to the expectation to remain at 49.5 points.

The same PMI data for the US will be published in the New York session tonight and is expected to affect the movement of the US dollar currency at the close of the last session.

Examining the price chart of the GBP/USD currency pair, the price successfully jumped from the 1.25000 level to reach 1.25700 in the European session yesterday.

This is the latest 11-week high level recorded after slightly above the price level in last Tuesday's trade around 1.25600.

However, the price retreated again in the New York session before closing trading slowly around the 1.25300 level.

The price is slowly flattening above the Moving Average 50 (MA50) support level on the 1-hour time frame on the GBP/USD chart suggesting a still bullish trend signal.

If the increase is successfully driven higher at the end of this week, the price increase will aim to reach the 1.26000 level.

However, it needs to factor in a further weakening of the US dollar with the possibility of the published US PMI reading declining.

On the other hand if the situation changes, the price could show a drop back below the MA50 support level before testing the 1.25000 zone.

A break lower will see the price reach back to the 1.24500 level during last Wednesday's trading before the focus is directed to the 1.24000 zone.