The GBP/USD pair is shedding some ground this Wednesday, and trades at fresh daily lows around 1.3920, now weighed by poor UK data. According to the latest release, the Construction PMI of the kingdom hit a 10-month low in February of 54.2. Expectations were of an up-tick to 55.5, but the reading came in to show growth momentum continues diminishing in the UK.
Later on this Wednesday, the US will release its ADP survey, the New York ISM manufacturing index and the Beige Book, with the first being probably the one with more chances to move the greenback. However, if the FED's report shows some signs of economic slowdown in the US, the American currency will likely came under pressure.
Technically, the risk turned towards the downside, albeit a continued decline is not yet confirmed, as in the 4 hours chart, the price is pressuring a horizontal 20 SMA, while the technical indicators have turned south, and the RSI already broke below its mid-line, now accelerating around 45.
Below 1.3900, the pair will likely extend its decline down to 1.3840, while below this last, 1.3790 is the next bearish target. The immediate resistance comes at 1.3960, with an advance beyond seeing the pair rallying up to the 1.4020/40 region.
View the live chart of the GBP/USD
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