Key Points
- The British Pound surged higher during the past few days and moved above 1.3220 against the US Dollar.
- There are two bullish trend lines with supports as 1.3220 and 1.3180 forming on the hourly chart of GBPUSD.
- Today in the UK, the PMI Construction for July 2017 was released by the Chartered Institute of Purchasing & Supply and Markit Economics.
- The outcome was below the forecast, as there was a decline in the PMI from 54.8 to 51.9.
GBPUSD Technical Analysis
The British Pound is a solid uptrend and recently surged higher above the 1.3200 and 1.3220 levels against the US Dollar. The GBPUSD pair is now placed well above the 1.3220 level and the 21 hourly simple moving average.
The pair looks set to break the 1.3250 resistance for a new monthly high. On the downside, there are two bullish trend lines with supports as 1.3220 and 1.3180 forming on the hourly chart of GBPUSD.
The first trend line at 1.3220 is also near the 21 hourly simple moving average. So, one may consider buying dips near 1.3220-1.3200 in the near term.
UK’s Construction PMI
Today in the UK, the PMI Construction for July 2017 was released by the Chartered Institute of Purchasing & Supply and Markit Economics. The market was positioned for a minor decline from the last reading of 54.8 to 54.5.
The actual result was below the forecast, as there was a decline in the PMI from 54.8 to 51.9. It was the weakest construction result since August 2016. The report added that:
UK construction companies recorded another growth slowdown in July, reflecting lower volumes of commercial building and a softer expansion of housing activity. The latest survey also revealed a reduction in new business volumes for the first time since August 2016, which acted as a headwind to job creation and input buying across the construction sector.
Overall, the GBPUSD pair was not impacted much, and it may soon break 1.3250 for more gains in the near term.
