GBP/USD drops further to fresh weekly lows near 1.4470

By FXStreet The bears tightened their grip on the pound in the last hour, knocking-off GBP/USD to fresh weekly lows further below 1.45 handle.

GBP/USD down 1 big figure intraday

The GBP/USD pair trades -0.43% lower near fresh 1-week lows of 1.4466, with the bulls losing sight of 1.45 handle. The post-PMI sell-off extends in the cable as the GBP battering continues amid weaker UK fundamentals and looming uncertainty over the EU referendum.

The GBP/USD pair broke below 1.4500 levels after the construction sector activity in the UK economy
deteriorated worse-than expected in April and therefore added to the recent poor UK manufacturing PMI print. Meanwhile, the construction sector in the UK worsened in April, down to 52.0 from a previous reading of 54.2.

Moving on, the US ADP jobs data is expected to create volatility amid markets and could provide fresh incentives to the major. Also, the US ISM services PMI, factory orders and trade balance data will be closely watched for further momentum.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.4583/1.4600 (5-DMA/ round number), above which 1.4595/1.4600 (5-DMA/ round number) would be tested. On the flip side, support is seen at 1.4419/00 (20-DMA/ Apr 25 low) below that at 1.4379 …read more

Source:: FX Street