GBP/USD hit session lows after UK construction PMI

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

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The GBP/USD pair fell to a session low of 1.4329 after the gauge of construction sector released in the UK showed the pace of expansion contracted more than expected in January.

    Trades below 23.6% fibo level

    As of writing, the pair traded below 1.4351 (23.6% of 1.5230-1.4079) levels. Sterling was on a weak footing ahead of the data as it fell below 1.44 levels amid risk aversion in the European equity markets. The weaker-than-expected construction PMI figure only added to the bearish tone around Sterling.

    The data calendar in the US is light. Hence, the bearish tone around cable may persist especially if the risk-off worsens in the US session.

    GBP/USD Technical Levels

    The spot traded around 1.4335 levels at the time of writing. A recovery above 1.4351 (23.6% of 1.5230-1.4079) could help the pair revisit 1.44 levels. On the other hand, a break below 1.43 would open doors for a slide to 1.4228 (previous day’s low).
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