The GBP/USD pair remains stuck around the 1.5600 figure, weakening after the release of the UK Markit construction PMI that fell in July to 57.1 after hitting a four-month high of 58.1 in June. Nevertheless, the pair continues to trade above its 200 EMA in the 4 hours chart, around 1.5565, with the level attracting short term buyers ever since the week started.
However, the pair is unable to extend gains beyond the 1.5600 level, which maintains the risk towards the downside, particularly on a break below the mentioned 20 SMA. In the same chart, the Momentum indicator maintains a neutral stance, although the RSI indicator heads south around 45, supporting the short term view and favoring a decline towards the 1.5500/20 price zone.
At this point, the pair needs to establish above 1.5630 to be able to extend its rally up to the 1.5670 price zone, where strong selling interest capped the upside for most of last July.
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View live chart of the GBP/USD
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