GBP/USD sinks to lows near 1.3920 on PMI

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

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The sterling met further downside pressure after the release of UK’s Construction PMI, sending GBP/USD to the lower bound of the range near 1.3930.

    GBP/USD after PMI

    Spot has quickly faded the bull run towards the vicinity of the psychological handle at 1.4000 earlier in the session after UK’s Construction PMI missed expectations for the month of February, coming in at 54.2 vs. 55.5 forecasted and January’s 55.0.

    The selling pressure around GBP is now picking up further pace, relegating spot to the 1.3920 area and leaving the door open for a test of the 1.3900 key support.

    GBP/USD levels to consider

    As of writing the pair is retreating 0.25% at 1.3921 and a breach of 1.3836 (multi-year low Feb.29) would expose 1.3681 (monthly low June 2001) and then 1.3653 (monthly low March 2009). On the other hand, the next hurdle lines up at 1.4251 (20-day sma) followed by 1.4410 (high Feb.19) and finally 1.4444 (55-day sma).
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