FxWirePro: GBP/USD recovers slightly on better than expected Construction PMI, good to buy on dips
Cable has recovered almost 88 pips from the low of 1.35804 made today. The minor jump in Pound sterling was mainly due to positive economic data for UK. UK construction sector has shown a good rebound in the month of Apr…
Cable has recovered almost 88 pips from the low of 1.35804 made today. The minor jump in Pound sterling was mainly due to positive economic data for UK. UK construction sector has shown a good rebound in the month of Apr. It came at 52.5 compared to forecast of 50.5. The pair declined almost more than 700 pips in past two weeks on weak economic data and Brexit uncertainty.
On the higher side, nearby resistance is around 1.3689 (55- H EMA) and any break above targets 1.3740 (38.2% fibo)/1.3770/1.3800. Any break above 1.3800 confirm minor bearish invalidation and a jump till 1.4000 is possible.
The near term major support is around 1.35800 and any break below will drag the pair down till 1.3500.
It is good to buy on dips around 1.3640-45 with SL around 1.3600 for the TP of 1.3760/1.3800
