GBP/USD & UK Construction PMI: Downside road before BoE's meeting?
This week will be crucial for the Sterling, as the BoE will decide about interest rates and where the markets are expecting a possible rate cut on Thursday. However, before that key event, today at 08:30 GMT will be released the UK Construction PMI and analysts are expecting a decline to 44.2 from 46.0 in this month's reading. With that scenario, GBP could be hurt and we can see Cable re-testing July's lows.
Our technical view for GBP/USD at H4 chart is still sideways ahead of that macro data mentioned above. A triangle pattern can be seen below the 200 SMA, but still, we can see that the pair is trapped inside the post-Brexit range. If the Construction PMI is weaker than expected, a breakout below the support level can happen, towards the 1.2885 level on a first degree. The other scenario can be calling to a consolidation above last week's highs, in order to rally towards the 1.3428 level.