GBP/USD has posted slight gains in the Tuesday session. Currently, GBP/USD is trading at 1.2689, up 0.20% on the day. On the fundamentals front, British Construction PMI disappointed, with a score of 48.6, indicating contraction. This missed the estimate of 50.6 points. In the U.S., the sole event was Factory Orders. The indicator declined by 0.8%, above the estimate of -1.0%. This marked the second decline in three months. On Wednesday, the U.K. releases Services PMI.
British PMIs, which are key gauges of the economic activity, dropped into contraction territory in April. Construction PMI fell to 48.6, its third decline in four months. This followed a manufacturing PMI of 49.4, marking the first contraction since July 2016. Manufacturing news from the U.S. also disappointed, as ISM Manufacturing PMI slowed to 52.1, down from 53.0 a month earlier. This was the PMI’s weakest reading since November 2018. Global demand has fallen off due to trade tensions, and unless this situation improves, manufacturing in the U.K and the U.S. could continue to head downwards.
•1.2615 is providing support
•1.2723 is the next resistance line
•Current range: 1.2615 to 1.2723
British PMIs, which are key gauges of the economic activity, dropped into contraction territory in April. Construction PMI fell to 48.6, its third decline in four months. This followed a manufacturing PMI of 49.4, marking the first contraction since July 2016. Manufacturing news from the U.S. also disappointed, as ISM Manufacturing PMI slowed to 52.1, down from 53.0 a month earlier. This was the PMI’s weakest reading since November 2018. Global demand has fallen off due to trade tensions, and unless this situation improves, manufacturing in the U.K and the U.S. could continue to head downwards.
•1.2615 is providing support
•1.2723 is the next resistance line
•Current range: 1.2615 to 1.2723
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