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Market Analysis

Home » Featured » GBPUSD on verge of a break?

GBPUSD on verge of a break?

Posted by FXTimes in Featured - November 3rd, 2015 12:54 pm GMT

GBPJPY British Pound

Key Points

  • British Pound started to trade lower against the US Dollar after finding resistance near 1.5500.
  • GBPUSD is currently trading near 1.5400, which holds the key for more losses in the near term.
  • UK PMI Construction released by the Chartered Institute of Purchasing & Supply and Markit Economics registered a minor decline from 59.9 to 58.8 in October 2015.
  • The British Pound came under the bearish pressure after the release and started a downside move.

Technical Analysis

The GBPUSD pair recently tested the 1.5500 level where it found sellers and started a downside move. The pair is currently trading near 23.6% Fib retracement level of the last move from the 1.5244 low to 1.5501 high.

GBPUSD

The mentioned fib level is very important, but it looks like the pair might break it and move lower as it has moved below the 50 hourly simple moving average.

On the upside, there is a bearish trend line formed, acting as a hurdle for buyers.

UK Construction PMI

Earlier during the London session, there was a major release in the UK, as the PMI Construction, which shows business conditions in the UK construction sector was reported by the Chartered Institute of Purchasing & Supply and Markit Economics. The forecast was lined up for a decline from 59.9 to 58.8 in October 2015. The result was as expected as the UK Construction PMI came in at 58.8.

There was a minor downside reaction after the release. As, mentioned the GBPUSD pair is testing a major level, which if breached might clear the way for more losses.

Today, the US Factory orders will be released by the US Census Bureau that may impact the GBPUSD pair moving ahead.

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