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3 Aug 2015
GBP/USD meanders near lows around 1.5615, shrugs off UK data
FXStreet (Mumbai) - The British pound keeps losses versus the US dollar in the European morning, with GBP/USD hovering close to fresh session lows reached near 1.5610 levels. The cable was left unimpressed following the release of UK manufacturing PMI report which revealed that UK’s factories picked up pace stepping into the third quarter.
GBP/USD capped at 1.5645
The GBP/USD pair trades dead flat at 1.5627, recovering from fresh session lows reached at 1.5613 before the UK data. The cable swung between gains and losses, with the pound keeping near lows, albeit UK manufacturing sector improved above expectations.
At the start of the third quarter, UK manufacturing sector expanded as the Markit/CIPS PMI rose to 51.9 in July, up from last month's 26-month low of 51.4, exceeding expectations of 51.6.
However, the GBP/USD pair stood resilient to the strengthening US dollar, correcting heavy losses seen in Friday. The US dollar index, a virtual gauge of the greenback’s relative strength reversed previous losses and edged 0.21% higher to 97.53.
Later in the day, US data are due including personal income and spending data, followed by manufacturing numbers from ISM. Spending for June is predicted to decline rapidly, from 0.9% to 0.2%.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.5645 (Today’s High) above which gains could be extended to 1.5679 (July 31 High) levels. On the flip side, support is seen at 1.5600 below which it could extend losses to 1.5544 (July 22 Low) levels.
GBP/USD capped at 1.5645
The GBP/USD pair trades dead flat at 1.5627, recovering from fresh session lows reached at 1.5613 before the UK data. The cable swung between gains and losses, with the pound keeping near lows, albeit UK manufacturing sector improved above expectations.
At the start of the third quarter, UK manufacturing sector expanded as the Markit/CIPS PMI rose to 51.9 in July, up from last month's 26-month low of 51.4, exceeding expectations of 51.6.
However, the GBP/USD pair stood resilient to the strengthening US dollar, correcting heavy losses seen in Friday. The US dollar index, a virtual gauge of the greenback’s relative strength reversed previous losses and edged 0.21% higher to 97.53.
Later in the day, US data are due including personal income and spending data, followed by manufacturing numbers from ISM. Spending for June is predicted to decline rapidly, from 0.9% to 0.2%.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.5645 (Today’s High) above which gains could be extended to 1.5679 (July 31 High) levels. On the flip side, support is seen at 1.5600 below which it could extend losses to 1.5544 (July 22 Low) levels.