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4 Feb 2013
Forex: GBP/USD upside capped around 1.5740
The sterling is now following its European peer on Monday, retracing initial gains after today’s tops in the vicinity of 1.5740
In the data space, the UK construction PMI came in at 48.7 during January, matching December’s print although below the 49.4 forecasted.
“The combination of a reversal of euro safe haven flows, general euro strength, the currency market pricing in further BoE monetary easing and the fear of the UK experiencing a triple dip is in our view weighing on GBP”, argued Chief Analyst A. von Mehren at Danske Bank.
At the moment, the cross is up 0.16% at 1.5718 with the next resistance at 1.5780 (MA10d) followed by 1.5879 (high Feb.1).
On the flip side, a breakdown of 1.5674 (low Jan.28) would open the door to 1.5636 (low Aug.16).
In the data space, the UK construction PMI came in at 48.7 during January, matching December’s print although below the 49.4 forecasted.
“The combination of a reversal of euro safe haven flows, general euro strength, the currency market pricing in further BoE monetary easing and the fear of the UK experiencing a triple dip is in our view weighing on GBP”, argued Chief Analyst A. von Mehren at Danske Bank.
At the moment, the cross is up 0.16% at 1.5718 with the next resistance at 1.5780 (MA10d) followed by 1.5879 (high Feb.1).
On the flip side, a breakdown of 1.5674 (low Jan.28) would open the door to 1.5636 (low Aug.16).