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GBPUSD : Extending Losses After Upbeat US ISM Manufacturing Data

GBPUSD : Daily Chart

Dollar is trading higher today against its major counterparts, let’s have a look at GBPUSD for now. The pair today declined extending its losses on the daily chart finding resistance from the resistance trend line of the falling channel and will continue to decline until it reaches the support trend line of the channel. The pair remain bearish as 50 day SMA is also contracting towards the 100 day SMA signaling a downtrend continuation.

GBPUSD : 4 Hour Chart

On the 4 hour chart, the pair tried to reverse the downtrend by following a rising channel pattern but it was not able to hold gains above the rising support trend line of the channel and declined.The immediate support which the pair may find if it continues to decline is at 1.6465.

"Institute of Supply Management also posted the Purchasing Manager Index data today which showed that the business confidence in U.S. increased to 59% in August of 2014 from the reading of 57.10% in July 2014.Economists were expecting the index to tick down to 57"

The strong data will continue to provide support to US dollar and create pressure on British Pound.