GBP/USD declined on Tuesday as sterling was weighted down by downbeat UK construction data and political risks associated with Britain's departure from the European Union. Growth in Britain's construction industry slowed…
GBP/USD declined on Tuesday as sterling was weighted down by downbeat UK construction data and political risks associated with Britain's departure from the European Union.
Growth in Britain's construction industry slowed slightly in March, adding to signs that the economy has lost some of its strong momentum of late last year when it defied the shock of the Brexit vote, a survey showed on Tuesday.
The Markit/CIPS Construction Purchasing Managers' Index (PMI) dropped back to 52.2 from 52.5 in February.
The ongoing weakness is set to continue for this pair as the resistance level at 1.2527 is likely to act as strong barrier to the bulls and bring a further decline towards lower levels.
To the upside, immediate resistance can be seen at 1.2475, a break above this level would expose the cable to next resistance level at 1.2527 levels.
To the downside strong support can be seen at 1.2421, a break below at this level will open the door towards next level at 1.2351.
