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13 Mar 2015
GBP/USD drops to fresh lows below 1.4830
FXStreet (Mumbai) - GBP/USD fell back into red and reached fresh session lows in the mid-European session after UK construction output data showed that activity in the UK construction sector deteriorated significantly in January.
GBP/USD slips from 1.4870 levels
The GBP/USD pair trades lower by -0.32% at 1.4834, retreating from 1.4870 levels post the data release. The cable dived deeper into losses after the pound was smashed on bearish UK construction sector report.
The construction sector in the UK, which accounts for some 6.3% of the total economy, suffered a steep decline by 2.6% in January, after increasing 0.6% a month before. On a year-on-year basis, output in the sector fell 3.1%, a significant deceleration from a 5.3% annual increase in December
Moreover, a firming US dollar across the board continued to suppress GBP/USD further. Meanwhile, in absence of more GBP data, traders will now turn their attention towards US economic releases later in the day for further momentum on the major.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.4893 above which gains could be extended to 1.4920 levels. On the flip side, support is seen at 1.4800 (Jul 2013) levels below which it could extend losses to 1.4780 levels.
GBP/USD slips from 1.4870 levels
The GBP/USD pair trades lower by -0.32% at 1.4834, retreating from 1.4870 levels post the data release. The cable dived deeper into losses after the pound was smashed on bearish UK construction sector report.
The construction sector in the UK, which accounts for some 6.3% of the total economy, suffered a steep decline by 2.6% in January, after increasing 0.6% a month before. On a year-on-year basis, output in the sector fell 3.1%, a significant deceleration from a 5.3% annual increase in December
Moreover, a firming US dollar across the board continued to suppress GBP/USD further. Meanwhile, in absence of more GBP data, traders will now turn their attention towards US economic releases later in the day for further momentum on the major.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.4893 above which gains could be extended to 1.4920 levels. On the flip side, support is seen at 1.4800 (Jul 2013) levels below which it could extend losses to 1.4780 levels.