GBP/USD in short range below 1.6840

By FXstreet.com | August 04, 2014 AAA

FXStreet (Edinburgh) - The sterling is trading unmotivated on Monday, taking the GBP/USD to a narrow range between 1.6820 and 1.6840 so far.



GBP/USD in multi-week lows



Spot continues to navigate around levels last seen in mid-June in the low-1.6800s band, following the prevailing lack of direction in the broader FX universe. Data wise in the UK, the Construction PMI came in at 62.4 in July, a tad higher than expectations (62.0) albeit lower than June’s print (62.6). “The lack of any significant rebound suggests that the undertone for this pair is still weak. Expect 1.6865 to cap for today for a retest of the Friday’s low near 1.6810”, mentioned Quek Ser Leang, Market Strategist at UOB Group.



GBP/USD levels to watch



At the moment the pair is up 0.06% at 1.6832 and a break above 1.6906 (high Aug.1) would open the door to 1.6926 (high Jul.31) and finally 1.6945 (10-d MA). On the downside, the initial support aligns at 1.6812 (low Aug.1) ahead of 1.6811 (76.4% of 1.6693 -1.7192) and then 1.6786 (low Jun.12).



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