GBP/USD Bounces Off 1.4520 Ahead of PMI

GBP/USD Bounces Off 1.4520 Ahead of PMI

4 May 2016, 09:51
Roberto Jacobs
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GBP/USD Bounces Off 1.4520 Ahead of PMI

The sterling is posting meagre gains vs. the greenback during the European morning, taking GBP/USD to the area of 1.4540 for the time being.

GBP/USD attention to PMI, US releases

After climbing to fresh 4-month highs near 1.4770 on Tuesday, the pair has surrendered those gains and sparked a more than 2-cents correction lower towards the 1.4520 area seen overnight following a sharp reversion of the US Dollar.

With spot trading almost unchanged today, UK’s Construction PMI is due next although all the attention will turn to the US calendar, where the ADP report, trade balance figures and the ISM Non-manufacturing are all due later in the NA session.

GBP/USD levels to consider

As of writing the pair is up 0.07% at 1.4545 and a break above 1.4769 (high May 3) would open the door to 1.4815 (2016 high Jan.4) and finally 1.4859 (200-day sma). On the flip side, the next support lines up at 1.4387 (100-day sma) ahead of 1.4298 (low Apr.21) and finally 1.4269 (55-day sma).


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