GBP/USD’s attempt at recovering Friday’s loss ran out of steam near 5-DMA of 1.4241 in Asia and the spot is now trading around 1.4225 levels; largely unchanged on the day.
Eyes UK data
Traders await the release of UK construction PMI report which is expected to show the pace of expansion in the construction sector remained unchanged in March. This is the least important PMI release compared to manufacturing and service PMI figures.
Cable suffered a sharp sell-off on Friday after UK manufacturing PMI highlighted weakness in the activity. Apart from Construction PMI, Brexit related news flow and US factory order figures could influence the pair as well.
GBP/USD Technical Levels
The immediate hurdle is noted at 1.4241 (10-DMA) + 1.4252 (50% of 1.4669-1.3835), above which the spot may target 1.4278 (50-DMA) and 1.4312 (5-DMA). Conversely, a breakdown of support at 1.4194 (Mar 29 low) would expose 1.4154 (38.2% of 1.4669-1.3835) and 1.41 handle.
(Market News Provided by FXstreet)