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3 Aug 2015
GBP/USD drops below 1.5600
FXStreet (Mumbai) - The British pound continues to underperform against the US dollar in the European session, with GBP/USD now surrendering 1.56 handle. The major remains pressured amid broad based US dollar strength while markets chose to comfortably ignore above estimates UK manufacturing PMI report.
GBP/USD drops from 1.5615
The GBP/USD pair dropped -0.25% to fresh session lows at 1.5586, quickly giving away about 30 pips in the last few minutes. The losses in the GBP/USD pair were accentuated as the pound finally gave into the US dollar strength with the DXY, a virtual gauge of the greenback’s relative strength standing firmer at 97.47.
Moreover, markets shrugged off upbeat UK manufacturing PMI data which continued its expansion in July. At the start of the third quarter, UK Markit/CIPS PMI rose to 51.9 in July, up from last month's 26-month low of 51.4, exceeding expectations of 51.6.
Later in the day, US data are due including personal income and spending data, followed by manufacturing numbers from ISM. Spending for June is predicted to decline rapidly, from 0.9% to 0.2%.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.5645 (Today’s High) above which gains could be extended to 1.5679 (July 31 High) levels. On the flip side, support is seen at 1.5575 (July 15 Low) below which it could extend losses to 1.5544 (July 22 Low) levels.
GBP/USD drops from 1.5615
The GBP/USD pair dropped -0.25% to fresh session lows at 1.5586, quickly giving away about 30 pips in the last few minutes. The losses in the GBP/USD pair were accentuated as the pound finally gave into the US dollar strength with the DXY, a virtual gauge of the greenback’s relative strength standing firmer at 97.47.
Moreover, markets shrugged off upbeat UK manufacturing PMI data which continued its expansion in July. At the start of the third quarter, UK Markit/CIPS PMI rose to 51.9 in July, up from last month's 26-month low of 51.4, exceeding expectations of 51.6.
Later in the day, US data are due including personal income and spending data, followed by manufacturing numbers from ISM. Spending for June is predicted to decline rapidly, from 0.9% to 0.2%.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.5645 (Today’s High) above which gains could be extended to 1.5679 (July 31 High) levels. On the flip side, support is seen at 1.5575 (July 15 Low) below which it could extend losses to 1.5544 (July 22 Low) levels.