UK PMI data was well below the estimates and this is going to play in the election story. So overall, we have very weak economic data for the UK from GDP to PMI and all this creates more trouble for Mr Cameron. The GBP/USD is under immense pressure after the data and we are experiencing more short trades. However, the momentum is not that strong, so the move could fade.
Overall, traders are going to take some profit off the table by closing most of the positions going into the long weekend and with the looming uncertainty of the UK election.
The GBP/USD pair is trading below the 50 day and 100 day moving average which represents a bearish sentiment for the pair. It has also broken its upward trend line and this itself is a further support for the above argument. However. the RSI and the MCAD indicators are showing a clear sign of divergence in relation to the price action which means while the price is making the lower low, the indicators are making the higher highs thus the trend could reverse soon.