Categories: Markets

GBP/USD: Retest of 1.2610/15 likely – Scotiabank

GBP/USD: Retest of 1.2610/15 likely – Scotiabank

UK construction PMI data rose sharply in July, reaching 55.3 from 52.2 in June, notes Shaun Osborne, FX strategist at Scotiabank.

Bears push to test the 1.2610/15 area

“The July result was the strongest in more than two years. The data had little impact on the British Pound (GBP), which is the worst-performing currency among major peers so far today. On the margin, images of widespread social unrest across the UK over the past week could be weighing on sentiment.”

“Sterling was somewhat immune to yesterday’s volatility, with the rally in GBP seen intraday leaving the spot’s declining trend since mid-June unbroken. Losses are extending this morning, with GBP pushing under mild support at 1.2700/10 at time of writing. A retest of late June lows around 1.2610/15 looks likely at this rate. Resistance at 1.2840/50.”

Source: Fx Street