GBP/USD Drops Further to Fresh Weekly Lows Near 1.4470
The bears tightened their grip on the pound in the last hour, knocking-off GBP/USD to fresh weekly lows further below 1.45 handle.
GBP/USD down 1 big figure intraday
The
GBP/USD pair trades -0.43% lower near fresh 1-week lows of 1.4466, with
the bulls losing sight of 1.45 handle. The post-PMI sell-off extends in
the cable as the GBP battering continues amid weaker UK fundamentals
and looming uncertainty over the EU referendum.
The GBP/USD pair broke below 1.4500 levels after the construction sector activity in the UK economy
deteriorated
worse-than expected in April and therefore added to the recent poor UK
manufacturing PMI print. Meanwhile, the construction sector in the UK
worsened in April, down to 52.0 from a previous reading of 54.2.
Moving
on, the US ADP jobs data is expected to create volatility amid markets
and could provide fresh incentives to the major. Also, the US ISM
services PMI, factory orders and trade balance data will be closely
watched for further momentum.
GBP/USD Levels to consider
The
pair has an immediate resistance at 1.4583/1.4600 (5-DMA/ round
number), above which 1.4595/1.4600 (5-DMA/ round number) would be
tested. On the flip side, support is seen at 1.4419/00 (20-DMA/ Apr 25
low) below that at 1.4379 (100-DMA).
