FxWirePro: GBP/USD trades lower on weaker construction PMI data, good to sell on rallies
Cable has declined almost 50 pips from the high of 1.40848 after weak UK economic data. The pair hits low of 1.40286 and is currently trading around 1.40369. UK construction PMI came at 47 fastest drop since July 2016. I…
Cable has declined almost 50 pips from the high of 1.40848 after weak UK economic data. The pair hits low of 1.40286 and is currently trading around 1.40369. UK construction PMI came at 47 fastest drop since July 2016. It fell from 51.4 in Feb and reading below 50 indicates a decline in activity. It is currently trading around 1.40440.
Market eyes US ADP employment and ISM non-manufacturing data to be released today for further direction.
Technically on the lower side, near term support is around 1.4030 (trend line support) and any break below will drag the pair down till 1.4010 (20- day MA)/1.39825/1.3925.
The near term resistance is around 1.4100 and break above will take the pair till 1.4150/1.4220/1.4245. The pair should break above 1.4250 for further upside.
It is good to sell on rallies around 1.4045-50 with SL around 1.4100 for the TP of 1.398/1.3925.
