GBP/USD dips to 2-week lows near 1.5585 ahead of UK PMI

FXStreet (Mumbai) - The British pound prolongs its downward trajectory versus the US dollar in the European morning trades, knocking-off GBP/USD to fresh two week lows on the 1.55 handle. The cable remains heavy on the back of broad US strength while markets now await UK construction sector report ahead of the key US NFP figures.

UK PMI, US NFP eyed

The GBP/USD pair trades -0.20% lower at fresh two week lows of 1.5582. The major was sold-off this session as the USD bulls took back control supported by solid US labour and manufacturing data released on Wednesday.

Meanwhile, the dollar index which measures the greenback’s strength against its major peers, now trades 0.09% higher at 96.58, hovering close to three week highs.

Moreover, a miss on manufacturing PMI report released in the previous session also keeps sterling undermined across the board.

Markets now eye construction PMI reading from the UK, while the main market mover remains the US employment data due later today.

Watch the NonFarm Payrolls Live Coverage with Valeria Bednarik and Dale Pinkert

GBP/USD Levels to consider

The pair has an immediate resistance at 1.5617 (Today’s High) above which gains could be extended to 1.5657 (June 16 High) levels. On the flip side, support is seen at 1.5539 (June 16 Low) below which it could extend losses to 1.5500 levels.

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