GBP/USD Breaks Below 1.4500 on PMI

GBP/USD Breaks Below 1.4500 on PMI

4 May 2016, 11:04
Roberto Jacobs

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).


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