GBPUSD trading 0.02 percent higher at 1.2127 after the United Kingdom Markit Construction PMI came in at 45.3 missing expectations of 46 in July.
GBPUSD fights to fly away from recent lows at 1.2129 as any upside move meets huge blocks of selling orders; the short term momentum is negative for the pair, but if it manages to close today above 1.2170 the high from yesterday, then bulls have something to hope. On the upside immediate resistance stands at 1.2142 the 50 hour moving average while more offers will emerge at 1.2171 the 100 hour moving average and yesterday’s high. Intraday traders can enter a long position if the pair breaks above 1.2142 targeting 1.2170 high for profit, a stop order should be activated at 1.19. Short positions targeting below 1.21 and at 1.2050 should place stop loss orders at 1.2142. All in all the momentum is bearish but as the RSI 14 in the daily chart has reached oversold levels at 26.04 there is a possibility for the pair to make a rebound.Don’t miss a beat! Follow us on Twitter.