FX.co ★ Technical analysis of GBP/USD for July 02, 2015

The euro extended its fall for the second consecutive day closing below 20&50Dsma with a 0.6% loss. Soft data from the UK pulled the cable towards a 2-weeks low.

The UK manufacturing growth hit its slowest rate in last 26 months. The seasonally adjusted Markit/CIPS Purchasing Managers' Index fell to a 26-month low of 51.4 in June down from a revised reading of 51.9 in May. US ADP and ISM manufacturing PMI data boosted US dollar bulls.

Overview: The cable is trading below the previous swing high of 1.5815 and below 50Wsma at 1.5650. The cable managed to breach the falling bearish channel consolidating a tight range of 138 pips between 1.5665 and 1.5803 finally closed below that with targets at 1.5550 or 1.5520. The weekly resistance is seen at 1.5640, 1.5735, and 1.5805. The weekly support is found at 1.5650 50Wsma, 1.5550, and 1.5490. Whereas the 200hrsma and Ema is between 1.5560 and 1.5540.

Intraday: The cable has been hitting lower highs and lower lows in the H1 and H4 charts. Intraday support is found at 1.5570, 1.5560, and 1.5540. we will find strong supports every 10 to 20 pips. The hourly momentum indicated that levels are oversold. Intraday resistance is seen at 1.5630, 1.5675, and 1.5700. The bulls must close above1.5730 to regain the control.