GBP/USD Breaks Below 1.4500 on PMI
The sterling is now moving into the red territory against the dollar, sending GBP/USD back to sub-1.4500 levels.
GBP/USD weaker after poor PMI
The
pair has broken below the 1.4500 critical support helped by another
disappointing print from the UK calendar, where Construction PMI has
come in at 52.0 for the month of April vs. 54.0 expected and down from
March’s 54.2.
The data adds to yesterday’s lower-than-expected
PMI from the UK’s manufacturing sector, returning to levels below the 50
mark for the first time since May 2013.
Next on tap will be the US docket, with ADP report and the ISM Non-manufacturing taking centre stage.
GBP/USD levels to consider
As
of writing the pair is losing 0.13% at 1.4516 facing the immediate
support at 1.4387 (100-day sma) ahead of 1.4298 (low Apr.21) and finally
1.4269 (55-day sma). On the other hand, 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).
