UK Construction PMI (Oct) declines to 61.4 , GBPUSD remains under pressure !

UK kbhars
UK kbhars

The Chartered Institute of Purchasing and Supply (CIPS) Construction Purchasing Manager’s Index (PMI) measures the activity level of purchasing managers in the construction industry. A reading above 50 indicates expansion in the construction industry; a reading below indicates contraction. It gives an indication about the health of the construction section in the UK.

Usual Effect: A high reading or a better than expected number is seen as positive for the GBP, while a low reading is negative.

Frequency: Released monthly, on the second business day after the month ends.

Last Read :64.2

Expectations : 63.5

Actual : 61.4

Volatility : Various from month to month !! (sometimes high volatility , sometimes medium volatility). 

Market Impact :A reading below 62.00 should bring bearish move.

Technical Outlook : Intraday outlook in GBPUSD remains on the downside as long as 1.6008 holds on a 4 hour basis , support comes at the 1.5965 levels ahead of the 1.5925 , further losses will aim the 1.5873 levels.On the upside , sustained trading above the 1.6008 levels on a 4 hour closing basis will extend rebound towards the 1.6087/1.6140 levels before the next fall.

Overbought zone : 1.6008

Support and resistance : 1.5800 , 1.5873 , 1.5925 , 1.5965 , 1.6008 (main), 1.6087 , 1.6140 , 1.6182

Conclusion : the pair is under pressure , trades below main resistance 1.6008 , further downside is likely …..any rise should be limited by resistance ?!!