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2 Sep 2015
GBP/USD drops to fresh 3-month lows near 1.5270, UK PMI weighs
FXStreet (Mumbai) - The GBP bears took over complete control and keep pushing GBP/USD further away from 1.53 handle in the European afternoon, as markets digest the recent weak UK fundamentals ahead of crucial US economic releases later this week.
GBP/USD miring around lows
The GBP/USD pair trades -0.20% lower at 1.5270, hovering around fresh session lows struck at 0.5765. The major remains pressured amid favourable environment towards the US dollar while the recent below estimates UK macro releases continue to dent investors’ confidence in the UK economic prospects.
On Wednesday, the UK's construction PMI gained pace and rose to 57.3 in August following the previous months reading of 57.1, while markets were expecting a reading of 57.5.
Moreover, yesterday's UK manufacturing PMI unexpectedly slowed its pace in August, down to 51.5 from 51.9, which also dragged the pound lower.
Meanwhile, focus now shifts to the upcoming US session with the ADP figures and factory orders on the cards. The latest ADP employment report for August is expected to come in at 200,000 compared to 185,000 in the previous month.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.5320 (Today’s High) above which gains could be extended to 1.5408 (Sept 1 High) levels. On the flip side, support is seen at 1.5219 (June 8 Low) below which it could extend losses to 1.5188 (June 5 Low) levels.
GBP/USD miring around lows
The GBP/USD pair trades -0.20% lower at 1.5270, hovering around fresh session lows struck at 0.5765. The major remains pressured amid favourable environment towards the US dollar while the recent below estimates UK macro releases continue to dent investors’ confidence in the UK economic prospects.
On Wednesday, the UK's construction PMI gained pace and rose to 57.3 in August following the previous months reading of 57.1, while markets were expecting a reading of 57.5.
Moreover, yesterday's UK manufacturing PMI unexpectedly slowed its pace in August, down to 51.5 from 51.9, which also dragged the pound lower.
Meanwhile, focus now shifts to the upcoming US session with the ADP figures and factory orders on the cards. The latest ADP employment report for August is expected to come in at 200,000 compared to 185,000 in the previous month.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.5320 (Today’s High) above which gains could be extended to 1.5408 (Sept 1 High) levels. On the flip side, support is seen at 1.5219 (June 8 Low) below which it could extend losses to 1.5188 (June 5 Low) levels.