4 Aug 2015
GBP/USD capped below 1.5600 post UK data
FXStreet (Mumbai) - GBP/USD stalled its recovery at 1.5600 levels and trades muted in the European morning, as the GBP traders digest the latest UK construction PMI report which revealed that the UK construction sector activity weakened in July on the back of softer housing sector activity.
GBP/USD re-attempts a bounce to 1.5600
The GBP/USD pair trades modestly flat at 1.5594, recovering losses booked after the downbeat UK data release. The bid tone around the GBP/USD pair seems to be developing as the markets appear to have shrugged off poor UK construction PMI data released this European session.
Activity of UK construction firms unexpectedly decelerated as Markit/CIPS headline PMI index ticked down to 57.1 in July, from a four-month high of 58.1 in June, and below market estimate of 58.5. This was mainly due to weaker activity in the residential building, which was the second slowest since mid-2013.
Meanwhile, a weaker US dollar against its major peers mainly driven strengthening AUD on RBA, also keeps the GBP/USD pair supported. The DXY, a virtual gauge of the greenback’s relative strength trades -0.11% lower at 97.49.
Markets now turn their attention towards US factory orders data due to be releases later today for further momentum on the pair.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.5618 (Today’s High) above which gains could be extended to 1.5679 (July 31 High) levels. On the flip side, support is seen at 1.5572 (Today’s Low) below which it could extend losses to 1.5544 (July 22 Low) levels.
GBP/USD re-attempts a bounce to 1.5600
The GBP/USD pair trades modestly flat at 1.5594, recovering losses booked after the downbeat UK data release. The bid tone around the GBP/USD pair seems to be developing as the markets appear to have shrugged off poor UK construction PMI data released this European session.
Activity of UK construction firms unexpectedly decelerated as Markit/CIPS headline PMI index ticked down to 57.1 in July, from a four-month high of 58.1 in June, and below market estimate of 58.5. This was mainly due to weaker activity in the residential building, which was the second slowest since mid-2013.
Meanwhile, a weaker US dollar against its major peers mainly driven strengthening AUD on RBA, also keeps the GBP/USD pair supported. The DXY, a virtual gauge of the greenback’s relative strength trades -0.11% lower at 97.49.
Markets now turn their attention towards US factory orders data due to be releases later today for further momentum on the pair.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.5618 (Today’s High) above which gains could be extended to 1.5679 (July 31 High) levels. On the flip side, support is seen at 1.5572 (Today’s Low) below which it could extend losses to 1.5544 (July 22 Low) levels.