GBPUSD Spiked Higher Post UK Construction PMI

British Pound managed to gain traction against the US Dollar recently after collapsing towards 1.5100.

There was a major release in the UK, as the PMI Construction published by the Chartered Institute of Purchasing & Supply and Markit Economics came in at 59.9 for

September 2015.

The forecast was lined up for 57.5, but the outcome was above the market expectation.

UK Construction PMI

Earlier today during the London session, the UK saw a major release in the form of Construction PMI, which presents business conditions in the UK construction sector and reported by the Chartered Institute of Purchasing & Supply and Markit Economics. The expectation of the market was of an increase from the last reading of 57.3 to 57.5 in September 2015. However, the outcome was better compared with the forecast, as the UK Construction PMI rose to 49.9.

One key point to note was the fact that the new business growth continued to weaken, and even the latest increase in the new work was not good when compared with the past five months.

Commenting ont the report, the Senior Economist at Markit and author of the Markit/CIPS Construction PMI, Moore, stated that “Construction firms enjoyed a strong finish to the third quarter of 2015, as a sustained rebound in new development projects continued to have an impact on the ground.”

Overall, the data was encouraging and came as a relief for the British Pound buyers. There was a lot of bearish pressure noted on the currency and the lasted release might save it from more losses in the short term.

Technical Analysis – GBPUSD

Earlier this week, the British Pound declined heavily and traded near an important support area of 1.5100. There was a buying interest noted around the mentioned area which ignited an upside rally and pushed the GBPUSD pair higher.

The pair is currently making an attempt to trade higher and facing sellers near the 1.5180-1.5200 area. There is a cluster of hurdles around the stated area, and as long as the pair is below it, we cannot plan to enter a buy trade.

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