FxWirePro: Daily cloud limits upside in cable, good to short rallies around 1.5430

GBP/USD has been rejected at day's high by 1.5445, remains largely subdued following the release of UK construction sector activity report 

• Markit/CIPS construction PMI slowed again in October to 58.8, down from the previous month's 59.9, and stood a tad weaker than expectation (58.9)
   
• The pound remains largely muted, 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
   
• Prices peaked at 1.5498 on Monday and corrected back inside the cloud, daily slow stochs are approaching overbought levels
   
• Daily cloud limits upside in cable, the pair has not been significantly above the cloud since Aug when 1.5820 was the peak
   
• Sentiment across European stocks and US factory orders data due later in the day will likely influence further moves in the major
   

Recommendation: Good to sell rallies around 1.5430, SL: 1.5510, TP1: 1.5370, TP2: 1.5310

Resistance Levels:

R1: 1.5436 (daily cloud top)

R2: 1.5479 (100 DMA)

R3: 1.55 (Trendline resistance)

Support Levels:

S1: 1.5404 (Nov 2 low) 

S2: 1.5374 (Tenkan-Sen)

S3: 1.5370 (20-DMA)