Forex: GBP/USD below 1.5050 ahead of UK Construction PMI

Third consecutive flat Asian session for GBP/USD, barely moved in last 7 hours, inside a tiny 24 pip range 1.5021/45, mostly unchanged from previous weekly closed Friday, down already -7.5% year to date. Cable suffered a massive hit past Friday following worst UK Manufacturing PMI in 4 months, down to 47.9, selling off hard from 1.5180 level, now waiting for 1.5050 and 1.4900 options to expire at today’s 10:00 am New York cut, FXBriefs.com reported.

For the London session ahead, key risk event for Pound will come in the form of UK Construction PMI data at 09:30 GMT, expected to show slightly better figures than previous one. Valeria Bednarik, Chief Analyst at Fxstreet.com, notes “the hourly chart showing 20 SMA gaining bearish slope above current price and indicators aiming higher in oversold levels; price however is unable to recover ground, as the market believes the BOE will be announcing a QE extension in their meeting this week,” she suggests, adding: “The 4 hours chart shows a strong bearish momentum which supports a downside continuation rally towards 1.4920 price zone, as long as 1.5070 now attracts sellers,” the analyst concludes.

Support levels are located by Valeria at: 1.5010, 1.4960 and 1.4920, while resistance levels at: 1.5070 ,1.5115 and 1.5160.