FxWirePro: Cable extends range trade into EU Session, UK PMI data awaited

GBP/USD was rejected from daily highs above the 100-day SMA at 1.5479 on Monday and pulled back to trade around opening levels.

• Cable has been stuck between 1.5929 and 1.5107 since May 2015 (6 months), opened Tuesday 1.5416, traded range-bound between 1.5410-28 in Asia, currently at 1.5425
   
• Supports are seen at 1.5410 (hourly cloud top), 1.5404 (Nov 2 low) and 1.5370 (20- DMA)
   
• Resistances are lined up at 1.5436 (daily cloud top), 1.5479 (100 DMA) ahead of 1.55 (Trendline resistance)
   
• Focus on crucial UK construction PMI report due later in the session, and also US factory orders and IBD/TIPP Economic Optimism 
   
• Market expectations are for UK construction sector activity to have slowed to 58.9 points in Oct versus 59.9 booked in Sept
   
• Any positive surprise could buoy Sterling bulls, pair could tests 1.55 zone, Techs are neutral 
   

Resistance Levels:

R1: 1.5436 (daily cloud top)

R2: 1.5479 (100 DMA)

R3: 1.55 (Trendline resistance)

Support Levels:

S1: 1.5410 (hourly cloud top)

S2: 1.5404 (Nov 2 low) 

S3: 1.5370 (20- DMA)