GBP/USD: Will UK construction PMI rescue the bulls?

The GBP/USD pair witnessed aggressive selling pressure in late-Asia, knocking-off the rate nearly 30-pips from just below 1.25 handle.

However, the spot managed to quickly recover some ground from lows struck at 1.2460, as attention turns towards the UK construction PMI release, which may provide the much-needed respite to the GBP bulls.

The UK construction sector activity is expected to show growth in the month of March, and is expected to remain steady at 52.5.

Cable extended losses as risk sentiment deteriorated further, with the Asian equities diving deeper into the red zone alongside the treasury yields, reflecting increased flight to safety amid uncertainties over the Trump administration policies and looming Brexit concerns.

Later today, the US trade and factory orders data will also have a major influence on the GBP/USD pair.

GBP/USD Levels to consider            

Valeria Bednarik, Chief Analyst at FXStreet notes, “The 4 hours chart supports additional declines, as the price is currently developing below its 20 SMA, whilst the Momentum indicator is crossing below the 100 level, and the RSI heading south around 46. Still the pair has a major support around 1.2430, which stands for the 38.2% retracement of the January rally. A break below this last should expose March 29th low of 1.2375, en route to 1.2330 a strong static support. The upside should remain capped by selling interest around 1.2540/60 for the bearish trend to remain in place.”