The GBP bulls once again lost control as we progress towards the European open, now pushing GBP/USD back towards 1.42 handle.
GBP/USD drops from stiff resistance near 1.4225 region
The GBP/USD pair trades -0.12% lower at 1.4209, heading for a test of 1.42 handle. Growing expectations of a better UK construction PMI report due later this session, rescued the GBP bulls and allowed a minor-recovery from near 1.42 barrier, before the bears fought back control and pulled the GBP/USD pair about 20-pips lower.
The Markit/CIPS construction PMI survey is expected to show that the sector picked up pace at the end of the first quarter. The headline gauge is seen rising to 54.3 points, from 54.2 a month before.
Moreover, the GBP traders continue to remain wary on looming Brexit concerns, while weaker oil prices also restrict the GBP bulls to place big bets on the cable. Later today, besides, the UK construction PMI data, markets will also watch out the US factory and labour market data for moves on the major.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.4250/46 (round number/ 10-DMA), above which 1.4300 psychological levels) would be tested. On the flip side, support is seen at 1.4171 (Apr1 Low) below that at 1.4100 (key support).
GBP/USD drops from st
(Market News Provided by FXstreet)