The monthly construction PMI survey from IHS Markit saw construction activity falling sharply. Data showed that construction activity slipped to 43.1 in June from 49.4 in May. The data follows weak results in manufacturing which fell to 48.0 in June. The Bank of England Governor, Mark Carney cautioned of the downside risks to the sterling due to Brexit and the global trade wars.
GBPUSD Forming Inverse Head & Shoulders?
The currency pair has established a strong resistance level at 1.2739. Failing to breakout from this level after multiple tests, the GBPUSD has extended declines. If the current declines form a modestly higher low, then this would validate the inverse head and shoulders pattern. A breakout from the neckline resistance of 1.2739 could potentially open the way for some gains in the GBPUSD currency pair.
