The pound lost 90 odd pips at yesterday's session against the US dollar. The UK's manufacturing PMI grew slightly faster in January. The domestic market remained the prime driver of improved new order inflows. PMI rose to 53.0 in January, a shade higher than December’s revised reading of 52.7. On the other hand, the US PMI registered 53.5 percent, a decrease of 1.6 percentage points from December’s seasonally adjusted reading of 55.1 percent. At yesterday's session, the cable managed to hold at 1.5000. Today, the focus has shifted to the UK construction PMI data. In December, the reading came below expectations. We are expecting the same downtick again at this time as well with an estimate of 56.9 points.
The prices are closed and trading below the hourly moving averages. The intraday resistance exists at 1.5055, 1.5080, and 1.5100. Currently, the pair is trading in a range between 1.5100 and 1.4990. We recommend fresh long above 1.5050 with the targets at 1.5080,1.5100, 1.5160, and 1.5200. On the bearish front, if the prices break below 1.4990, we recommend selling with the targets at 1.4950, 1.4900, and 1.4860.
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