The pound also shrugged off some fairly negative economic data this morning to rally up to almost the 1.5500 mark.
There was some selling pressure on sterling after the UK Manufacturing PMI missed expectations and fell to a reading of 54.3 in August. Even with this negative reading though, the overall global market sentiment seemed to be bursting with an appetite for risk and it wasn’t until a better than expected Manufacturing PMI reading out of the U.S. that the dollar could gain back some of the earlier losses. Technically speaking, it was pretty important for the GBP to hold yesterday’s lows and after tracking sideways near those levels for almost 10 hours, any bearish attitude finally exhausted. For today, the resistance remains near the zone of 1.5475 to 1.5500 with a potential upside toward 1.5580 on a break of that zone. Support still looks strongest near yesterday’s lows around 1.5330 with 1.5240 being the next level on a break lower. Similar to the euro, there are a lot of economic events yet to come this week including key housing data set to be released near the opening of the UK trading session tomorrow.
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