On Monday the sellers sold the pound all the way to 1.5169 on the basis of weak PMI data in the UK and strong ISM in the USA. Now we’re waiting for the release of the PMI in the construction sector. This is putting real pressure on the pound. Then the focus will switch to the PMI in the British service sector (Wednesday) and the minutes from the Bank of England’s meeting (Thursday).
The pound/dollar is trading around 1.5204. Taking into account how the pound fell over the past 4 days, I reckon that it will return to the 45th degree and renew its fall. My target for today is 1.5145. A growth higher than 1.5255 will cancel out the scenario.
The pound/dollar rate fell to the interim support but there’s still a reserve left for a further reduction. If you’re looking for a recoil, then it’ll be from 1.5134.
The pound/dollar fell to 1.5169. The 45th degree was reached. From here a correction could start. If we go lower, the next target is 1.4883 (67th degree).