COZfx: GBP/USD holds modest gains after weak UK construction PMI

[kiriss5678]

COZforex: The pound remained moderately higher against the US dollar on Tuesday, even as data showed that UK construction sector activity expanded at the slowest rate in five months in October as investors locked in gains from the greenback's recent rally.

GBP/USD hit 1.6009 amid European morning trade, the session high; the pair subsequently consolidated at 1.5994, up 0.13%. In technical analysis, GBP/USD is predicted to find support at 1.5967, and a drop through could take it to the next support line of 1.5934. Meanwhile, the pair is predicted to find its first resistance at 1.6029, and a rise through could take it to the next resistance line of 1.6058.

In a report, market research firm Markit and the Chartered Institute of Purchasing & Supply said that their UK construction purchasing managers' index declined to 61.4 last month from a reading of 64.2 in September.

Manufacturing activity in Britain unexpectedly expanded to a 3-month high level of 53.2 in October, more than market expectations for a drop to a level of 51.4 and following a revised level of 51.5 recorded in September.

Demand for the dollar remained supported after the Insitute of Supply Management reported on Monday that its manufacturing purchasing managers' index rise to 59.0 this month from 56.6 in September. Analysts had expected the index to decline to 56.2 in October.

In the euro zone, official data earlier showed that the number of unemployed people in Spain increased by 79,200 in October, compared to expectations for a 23,400 rise, after an increase of 19,700 in September.

Later in the day, the US was to release trade balance data.

(COZ forex UK)

[orni308]

The pair has seen some bounce as the job numbers in America has been in better shape the pair might be on a bullish trend.