GBP/USD: correcting lower, but selling interest limited

GBP/USD Current price: 1.3562

  • UK Construction PMI missed expectations in December, down to 52.2.
  • USD modestly higher after five days of steady losses.

The GBP/USD pair retreated from a multi-month high of 1.3612 to the current 1.3560 region, as poor UK data coupled with a modest uptick in the DXY, which trades in positive territory after falling for five consecutive days. The December UK Construction PMI came in at 52.2, below the expected 52.5 and the previous 53.1, denting demand for the Pound.  The pair bottomed for the day at 1.3556, bouncing now modestly from it, and with the bearish potential limited according to  technical readings in the 4 hours chart, as the pair holds well above a bullish 20 SMA. In the mentioned chart, the Momentum indicator heads lower above its mid-line, while the RSI corrected overbought conditions, but turned flat around 67, indicating that sellers are still a minority. Nevertheless, the pair would need to surpass the mentioned daily high to turn intraday bullish, with the next probable target being then 2017 high at 1.3653.

Support levels: 1.3550 1.3510 1.3480

Resistance levels: 1.3615 1.3655 1.3700

View Live Chart for the GBP/USD

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