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GBP/USD testing lows near 1.5410 on UK PMI

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 3, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The pound trades modestly flat versus the US dollar in the European morning, with GBP/USD little affected by the UK construction PMI report, which missed estimates.

    GBP/USD languishes near lows

    The GBP/USD pair trades flat at 1.5412, testing session lows struck at 1.5409. The major remains muted and now looks to test 1.54 handle as the pound remains largely subdued following the release of UK construction sector activity report published by Markit.
    The Markit/CIPS PMI measure of business activity within UK building companies slowed again in October to 58.8, down from the previous month’s 59.9, and stood a tad weaker than expectation (58.9).

    Moreover, a solid rebound staged by the dollar against its major competitors, after correcting lower in Asia, also dragged GBP/USD lower. The USD index gains 0.15% to 97.13.

    Later in the day, the sentiment on the European stocks and the US factory orders data will influence further moves in the major.

    GBP/USD Levels to consider

    The pair has an immediate resistance at 1.5444/50 (100-DMA/ psychological levels) above which gains could be extended to 1.5500 (round number). On the flip side, support is seen at 1.5402/00 (5-DMA/ round number) below which it could extend losses to 1.5363/59 (200-DMA/1h 200-SMA).
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