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During yesterday’s trading session GBP/USD traded within the range of 1.6726-1.6762 and closed at 1.6743.

At 6:51 GMT today GBP/USD was gaining 0.02% for the day to trade at 1.6751. The pair touched a daily high at 1.6752 at 6:50 GMT.

Fundamental view

United Kingdom

Activity in United Kingdom’s sector of construction probably accelerated in May, with the corresponding PMI coming in at 61.0. In April the index stood at 60.8. Readings above the key level of 50.0 are indicative of expansion in the sector. Higher than projected values would be supportive for the sterling. The Chartered Institute of Purchasing and Supply (CIPS) is to announce the results from its monthly survey at 8:30 GMT.

United States

Factory orders in the United States rose 0.5% in April, a monthly survey will probably reveal at 14:00 GMT. In March compared to February orders jumped 0.9%, which was a lower gain than initially reported. This indicator reflects current industrial activity in the country and also provides clues over sector development in the future. The survey is based on 89 different industrial categories, which are organized in 473 sub-groups. A larger rate of increase would be supportive for the US dollar.

Technical view

Screenshot from 2014-06-03 09:56:19

According to Binary Tribune’s daily analysis, in case GBP/USD manages to breach the first resistance level at 1.6761, it will probably continue up to test 1.6780. In case the second key resistance is broken, the pair will probably attempt to advance to 1.6797.

If GBP/USD manages to breach the first key support at 1.6725, it will probably continue to slide and test 1.6708. With this second key support broken, the movement to the downside will probably continue to 1.6689.

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