GBP/USD extends UK PMI-led downfall, slips below mid-1.4000s


   •  UK construction PMI slips into contraction territory and triggers GBP weakness.
   •  US-China trade tensions weigh on the USD and help limit further downside.
   •  Traders now eye US ADP report and ISM PMI for some fresh impetus.

The GBP/USD pair extended disappointing UK data-led retracement slide from the 1.4100 neighborhood and has now dropped to a fresh session low.

The British Pound started losing ground after data released on Wednesday showed activity in the UK construction sector unexpected dropped into contraction territory, with the Markit UK construction PMI coming in at 47.0 for March. 

Currently trading around 1.4040 area, the pair now seems to have snapped three consecutive days of winning streak and has also reversed previous session's modest gains. 

Meanwhile, some renewed US Dollar weakness, triggered by escalating US-China trade conflicts did little to lend any support, albeit could help limit any deeper fall, at least for the time being.

Focus now shifts to the US economic docket, featuring the release of ADP report on private sector employment, which along with the ISM non-manufacturing PMI might provide some fresh trading impetus during the early NA session.

Technical levels to watch

Any follow-through weakness below the 1.4025-20 immediate support is likely to drag the pair towards testing 50-day SMA support near the 1.3990 region en-route 1.3965-60 horizontal support.

On the upside, any up-move back above 1.4060 level might continue to confront some fresh supply near the 1.4100 handle and a subsequent up-move might now be capped near the 1.4120-25 support turned resistance.
 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Take advantage of market volatility with our daily Forex, Crypto and Indices Trade Ideas!

Become Premium!    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD recaptures 1.2050 amid upbeat EZ PMIs, USD decline

EUR/USD is trading above 1.2050 after upbeat Eurozone Preliminary PMIs. The US dollar remains heavily offered across the board amid a mixed market mood, in the wake of Biden's plan for a tax hike. US PMIs awaited. 

EUR/USD News

GBP/USD holds gains below 1.3900 amid upbeat UK data

GBP/USD is consolidating gains below 1.3900, as the US dollar resumes decline after Biden's tax hike plan fuelled rally fades. The UK Retail Sales and PMIs beat expectations, offering support to the pound. 

GBP/USD News

Bitcoin, Ethereum and XRP plummet, breaching critical support levels

Bitcoin price has dropped 12.7% since yesterday and shows no signs of stopping. Ethereum price follows the pioneer crypto’s lead and might retest $2,000 again. Unlike BTC or ETH, XRP price shows signs of recovery as long as it stays above a critical demand zone.

Read more

XAU/USD eases from tops, downside remains cushioned

Gold struggled to capitalize on its intraday positive move to the $1,790 region. A modest bounce in the equity markets, US bond yields exerted some pressure. The prevalent USD selling bias should help limit the downside for the commodity.

Gold News

Bionano Genomics Inc runs into technical resistance, put options may work here

BNGO shares have continued to suffer post the retail meme crowd moving on. BNGO shares bounce from lows as DeMark buy signal flashes on Monday. BNGO shares trend up to resistance at 100 day moving average.

Read more

Forex MAJORS

Cryptocurrencies

Signatures