1 May 2015
GBP/USD consolidates circa 1.5350, UK data eyed
FXStreet (Mumbai) - The British pound reversed previous losses and continues to trade around a flat line against the US dollar in the early European trades, keeping GBP/USD in range above 1.53 barrier, largely as traders remain cautious ahead of key UK manufacturing PMI data while the green back remains supported on the latest upbeat macro data.
GBP/USD resilient amid broad USD strength
The GBP/USD pair trades dead flat at 1.5352, oscillating in a slim 20-pips range following a volatile previous session. The GBP/USD pair extends its overnight side trend as caution prevails ahead of the crucial UK factory gauge due later in the session.
According to Paul Hollingsworth, Economist at Capital Economics: "March’s Markit/CIPS Manufacturing PMI (09.30 BST) may provide further signs that the sector’s recovery has turned a corner. We forecast a reading of 54.5. However, March’s household borrowing figures (09.30 BST) may signal that the recovery in mortgage lending is only picking up slowly."
Moreover, the cable consolidates previous losses after upbeat unemployment claims and Chicago PMI data boosted the greenback dragging the pair lower.
Meanwhile, markets remain focussed on the upcoming macro releases from the UK and the US amid a calm EUR calendar as the European markets remain closed on Labour Day.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.5492 (April 30 High) above which gains could be extended to 1.5553 (Feb 26 High) levels. On the flip side, support is seen at 1.5325 (April 29 Low) below which it could extend losses to 1.5300 levels.
GBP/USD resilient amid broad USD strength
The GBP/USD pair trades dead flat at 1.5352, oscillating in a slim 20-pips range following a volatile previous session. The GBP/USD pair extends its overnight side trend as caution prevails ahead of the crucial UK factory gauge due later in the session.
According to Paul Hollingsworth, Economist at Capital Economics: "March’s Markit/CIPS Manufacturing PMI (09.30 BST) may provide further signs that the sector’s recovery has turned a corner. We forecast a reading of 54.5. However, March’s household borrowing figures (09.30 BST) may signal that the recovery in mortgage lending is only picking up slowly."
Moreover, the cable consolidates previous losses after upbeat unemployment claims and Chicago PMI data boosted the greenback dragging the pair lower.
Meanwhile, markets remain focussed on the upcoming macro releases from the UK and the US amid a calm EUR calendar as the European markets remain closed on Labour Day.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.5492 (April 30 High) above which gains could be extended to 1.5553 (Feb 26 High) levels. On the flip side, support is seen at 1.5325 (April 29 Low) below which it could extend losses to 1.5300 levels.