GBP/USD Stays Down after US Data

GBP/USD Stays Down after US Data

1 June 2016, 16:37
Roberto Jacobs

GBP/USD Stays Down after US Data

GBP/USD remained little changed, trading near 2-week lows, following the release of mixed US data.

GBP/USD moved a few pips higher after testing support at the 50-day SMA following economic reports, which showed US manufacturing activity expanded in May but construction spending unexpectedly dropped in April. Cable was last trading around 1.4425, recording a 0.38% intraday loss, after bottoming out at 1.4404 in recent dealings.

Renewed fears of a so-called “Brexit” have been dragging the pound down over the last sessions after polls showed the EU referendum vote is tighter than previously thought.

GBP/USD levels to watch

In terms of technical levels, GBP/USD could find next supports at 1.4402 (50-day SMA), 1.4339/31 (100-day SMA/May monthly low) and 1.4299 (Apr 21 low). On the flip side, resistances are seen at 1.4510 (21-day SMA), 1.4574 (10-day SMA) and not much until 1.4723 (May 31 high).


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