GBP/USD skids into new ten-week low ahead of global PMI prints

• GBP/USD backslid half of a percent on Wednesday.
• Global PMIs including the UK and the US are due throughout Thursday.
• Central banker appearances to dominate headlines as the week winds down.

GBP/USD shed another half of a percent on Wednesday, tipping into a fresh ten-week low and grinding down toward the 1.2900 handle. Purchasing Managers Index (PMI) figures from both the UK and the US are due on a rolling schedule throughout Thursday, and investors will be keeping an eye out for a slew of central banker appearances from both the Bank of England (BoE) and the Federal Reserve (Fed).

The Pound Sterling swooned on Wednesday, declining further as GBP markets buckle under the weight of a broad-market Greenback recovery and investors brace for an overall decline in UK PMI prints for October.

Median market forecasts are expecting a slight downtick in UK activity numbers, with October's Services PMI specifically expected to ease to 52.2 from 52.4 the previous month. On the US side, median market forecasts expect October's US PMI figures to come in mixed, with the Manufacturing component expected to rise to 47.5 from 47.3, while the Services PMI component is expected to tick slightly lower to 55.0 from 55.2.

GBP/USD price forecast

GBP/USD has extended its bearish momentum, falling to the 1.2910 level, as downside pressure persists. The pair has recently broken below the 50-day EMA, which sits at 1.3079, indicating that the bears remain in control. The next key support level to watch is the 200-day EMA at 1.2847. A break below this level could signal further losses towards the 1.2800 psychological level. The recent price action shows a series of lower highs and lower lows, confirming the bearish trend that has been developing since the October highs.

The MACD is further confirming this bearish sentiment, with the MACD line crossing below the signal line and the histogram deepening in negative territory. This suggests that selling pressure could continue in the near term, with little sign of a bullish reversal. However, if the pair manages to hold the 200-day EMA, a bounce-back towards the 50-day EMA could offer short-term relief. Traders should remain cautious as the overall trend points to further downside risk unless key support levels hold.

GBP/USD daily chart