GBP/USD Back on the Bids Near 1.4550, UK PMI Eyed

GBP/USD Back on the Bids Near 1.4550, UK PMI Eyed

4 May 2016, 07:29
Roberto Jacobs
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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).


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