FxWirePro: GBP/AUD holds above 1.66 handle after UK construction PMI miss, bias higher, stay long

• The latest manufacturing PMI reading had fuelled lingering hopes of a hawkish BoE surprise tomorrow.
   
• But big miss on UK construction PMI today dents hopes for a hawkish surprise.
   
• Data released earlier today showed UK construction PMI dropped to 51.9 points in July, after having booked 54.8 points in June, missing expectations for a reading of 54.5.
   
• GBP/AUD edged lower from 1.6630 levels to hit 1.6606, finds strong support at 20-DMA at 1.6603.
   
• Technical indicators have turned bullish. RSI and Stochs are biased higher. MACD is now showing a bullish crossover on signal line.
   
• We see scope for further upside on decisive break above 200-DMA at 1.6681.
   
• On the flipside, 20-DMA is strong support at 1.6603 level. We see weakness only on break below.
   
• Focus now on BoE "Super Thursday" for a steer on whether record-low interest rates could soon be lifted.

Support levels - 1.6603 (20-DMA), 1.6503 (5-DMA), 1.6303 (July 22 low)

Resistance levels - 1.6681 (200-DMA), 1.67, 1.6776 (July 17 high)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-GBP-AUD-pares-losses-below-5-DMA-intraday-bias-higher-830532) has hit TP1&2.

Recommendation: Book partial profits at highs, raise stops to 1.65, hold for upside.

FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at 90.2376 (Highly bullish), while Hourly AUD Spot Index was at -43.3377 (Neutral) at 0900 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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