GBP/USD remains capped below 5-DMA ahead of UK PMI

By FXStreet FXStreet (Mumbai) – The side-ways movement in the GBP/USD pair extends into the European session, with the bulls awaiting fresh cues from the UK construction PMI report lined up for release shortly.

GBP/USD clings to 1.47 handle

The GBP/USD pair trades dead flat at 1.4715, having tested daily lows near 1.4707 in last hours. The major continues to consolidate the previous drop on the 1.47 handle, with the upside capped by 5-DMA placed at 1.4729 as the greenback remains strongly bid against its major competitors.

Moreover, the cable finds support from a complete turnaround in the risk conditions after the European stocks snapped previous losses and rebounded at open, thereby boosting the bids for higher yielding currencies.

Meanwhile, markets now await the construction PMI release from the UK docket for further momentum, following a poor manufacturing PMI reading seen yesterday. The UK construction PMI is expected to stay well in expansion at 56.0, and better than the previous 55.3 result.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.4729 (5-DMA), above which 1.4786 (1h 100-SMA) would be tested. On the flip side, support is seen at 1.4700 (round number) below which it could extend losses to 1.4661 (Jan 4 …read more

Source:: FX Street