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GBP/USD extends slide to 1.4360 ahead of UK PMI

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 2, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - The offered tone on the GBP keeps growing bigger as we head towards the UK construction PMI release, now keeping GBP/USD submerged in the red near lows.

    GBP/USD eyes daily pivot at 1.4365

    The GBP/USD pair drops -0.52% at fresh session lows struck at 1.4361 last minutes. The cable halted its 2-day recovery mode near 1.4450 region and witnessed an almost 60-pips drop as the investors gave up the higher-yielding currency GBP amid renewed risk-off wave as the European equities dive deeper in the red zone.
    Moreover, expectations of a slight slowdown in the pace of the UK’s construction sector activity in Dec also weigh on the GBP/USD pair. The UK construction PMI for January is forecasted to decrease slightly to 57.5 from 57.8.

    Meanwhile, the major will closely track the oil price action and the sentiment on the European equities ahead of the UK data.

    GBP/USD Levels to consider

    The pair has an immediate resistance at 1.4395/1.4400 (1h 5-SMA/ round number, above which 1.4436/48 (Daily & Feb 1 High) would be tested. On the flip side, support is seen at 1.4319/15 (1h 50- & 100-SMA) below which it could extend losses to towards 1.4250/ 24 (psychological levels/ Feb 1 Low).
    For more information, read our latest forex news.
     

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