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Yesterday’s trade saw GBP/USD within the range of 1.5585-1.5763. The pair closed at 1.5727, gaining 0.54% on a daily basis.

At 7:46 GMT today GBP/USD was down 0.10% for the day to trade at 1.5716. The pair touched a daily low at 1.5705.

Fundamentals

United Kingdom

Construction activity

Activity in United Kingdom’s sector of construction probably slowed down in November, with the corresponding PMI coming in at 61.0, down from 61.4 in October. The index is based on a survey, encompassing managers of companies, operating in construction sector. They are asked about their estimate regarding current business conditions (new orders, output, employment, demand in the future). Values above the key level of 50.0 signify that activity in the sector has expanded. Lower-than-projected readings would mount selling pressure on the pound. The Chartered Institute of Purchasing and Supply (CIPS) is to announce the official reading at 9:30 GMT.

United States

Construction spending

The amount of spending on all types of construction in the United States probably increased 0.5% in November compared to a month ago, following a 0.4% drop in October. Spending on residential construction, as a component of overall construction spending, has a predictive value for new home sales and mortgage origination volume. A faster-than-expected rate of increase in spending on construction projects may have a limited bullish effect on the US dollar. The Census Bureau is to release its report on spending at 15:00 GMT.

Pivot Points

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 1.5692. In case GBP/USD manages to breach the first resistance level at 1.5798, it will probably continue up to test 1.5870. In case the second key resistance is broken, the pair will probably attempt to advance to 1.5976.

If GBP/USD manages to breach the first key support at 1.5620, it will probably continue to slide and test 1.5514. With this second key support broken, the movement to the downside will probably continue to 1.5442.

The mid-Pivot levels for today are as follows: M1 – 1.5478, M2 – 1.5567, M3 – 1.5656, M4 – 1.5745, M5 – 1.5834, M6 – 1.5923.

In weekly terms, the central pivot point is at 1.5696. The three key resistance levels are as follows: R1 – 1.5777, R2 – 1.5908, R3 – 1.5989. The three key support levels are: S1 – 1.5565, S2 – 1.5484, S3 – 1.5353.

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