4 Aug 2015
GBP/USD regains 1.5600, awaits UK PMI
FXStreet (Mumbai) - The British pound remains better bid against the US dollar in the early European morning, lifting GBP/USD back above 1.56 handle. The major stages a minor recovery on expectations of expansion in the UK’s construction sector activity while broad based US dollar retreat also lends a helping hand.
GBP/USD rises from 1.5572
The GBP/USD pair trades 0.11% higher at 1.5603, fighting hard to hold onto 1.56 barrier. The bid tone around the GBP/USD pair grew bigger this session as the greenback receded against its major competitors, stalling its recovery seen in Asia. The DXY, a virtual gauge of the greenback’s relative strength turned in to the red and now trades at 97.53.
More so, markets expect a better reading of the UK construction PMI report which also offers some support to the GBP bulls, driving the cable higher. The UK will report on its construction sector with the figure expected to stay well in expansion at 58.5, slightly better than the previous 58.1 result.
On Monday, GBP/USD was left unimpressed by the upbeat UK manufacturing PMI data which continued its expansion in July. While poor US ISM manufacturing PMI also failed to lift the GBP pair.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.5645 (Today’s High) above which gains could be extended to 1.5679 (July 31 High) levels. On the flip side, support is seen at 1.5575 (July 15 Low) below which it could extend losses to 1.5544 (July 22 Low) levels.
GBP/USD rises from 1.5572
The GBP/USD pair trades 0.11% higher at 1.5603, fighting hard to hold onto 1.56 barrier. The bid tone around the GBP/USD pair grew bigger this session as the greenback receded against its major competitors, stalling its recovery seen in Asia. The DXY, a virtual gauge of the greenback’s relative strength turned in to the red and now trades at 97.53.
More so, markets expect a better reading of the UK construction PMI report which also offers some support to the GBP bulls, driving the cable higher. The UK will report on its construction sector with the figure expected to stay well in expansion at 58.5, slightly better than the previous 58.1 result.
On Monday, GBP/USD was left unimpressed by the upbeat UK manufacturing PMI data which continued its expansion in July. While poor US ISM manufacturing PMI also failed to lift the GBP pair.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.5645 (Today’s High) above which gains could be extended to 1.5679 (July 31 High) levels. On the flip side, support is seen at 1.5575 (July 15 Low) below which it could extend losses to 1.5544 (July 22 Low) levels.