The monthly manufacturing PMI from the UK saw the activity falling into contraction. IHS/Markit’s manufacturing PMI index recorded a reading of 49.4 on the index. This was below the estimates of 52.5 and down from 53.1 previously. Construction PMI is due later today. Forecasts show a modest pick up in construction activity from 50.5 in April to 50.6 in May.
GBPUSD Trades in a Range
The currency pair has been trading flat within 1.2716–1.2606 levels since last week. This sideways range could potentially give way for a breakout. The bias remains to the upside for the moment. A close above 1.2716 will trigger a possible correction in GBPUSD. The initial target is seen at 1.2895 followed by 1.2975 levels of resistance. To the downside, a close below 1.2606 could, however, signal further declines.
