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GBP/USD: Sideways action ahead of UK PMI report

FXStreet (Mumbai) - The GBP/USD spot is trading in the sideways manner around 1.5625, after having declined from the high of 1.5678 seen in the NY session on Friday.

Eyes UK PMI ahead of US Personal spending report

The investors await the data in the UK, which could show a gauge of manufacturing activity ticked higher in July. The final UK PMI print for July is seen rising to 51.5 in July from 51.4. The PMI report could throw light on the effect of the strong pound on the inflow of new work – export orders.

The UK PMI report will be followed by US personal spending and ISM manufacturing reports. At the moment, the FX markets are relatively stable despite weak Chinese PMI reports released earlier today. The treasury yields too are providing very little cues to the FX markets.

GBP/USD Technicals Levels

The immediate resistance is located at 1.5639 (38.2% of June rally), followed by another hurdle at 1.5690-1.5700. On the other hand, the spot could find support at 1.56 ahead of 1.5568 (38.2% of July 14-Apr 15 plunge).

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