GBP/USD Back on the Bids Near 1.4550, UK PMI Eyed
The GBP/USD
pair brought a pause to its yesterday’s slide, now attempting a
tepid-bounce towards daily highs as the US dollar recedes gains against
its major rivals.
GBP/USD: UK construction PMI in focus
The
GBP/USD pair trades +0.06% higher at 1.4543, heading for a test of
daily high reached at 1.4552 in early Asia. The bears appear to face
exhaustion after the recent relentless slide, allowing a minor pullback
in the cable from five-day lows struck at 1.4520 levels.
The GBP/USD
pair inches higher as we head into early Europe as the US dollar stalls
its rebound and now consolidates the upside against its major peers,
with the DXY off highs around 93.10 levels.
However, the
recovery looks fragile as markets continue to weigh a weaker UK
manufacturing PMI print released yesterday, which revealed the UK
manufacturing sector activity fell into contraction in April. Moreover,
expectations of a dismal construction PMI reading (54.1 expected versus
54.2 previous) later today, also keep the gains in check.
The
major will also get influenced by a slew of fresh economic releases,
including the US ADP jobs data, lined up for release later in the NA
session.
GBP/USD Levels to consider
The
pair has an immediate resistance at 1.4595/1.4600 (5-DMA/ round number),
above which 1.4625 (1h 50-SMA) would be tested. On the flip side,
support is seen at 1.4500 (round number) below that at 1.4422 (20-DMA).
