The Construction PMI hit 62.5 in March, down only slightly from the 62.6 in February and from 64.6 in January, which was the highest level since August 2007. The out turn still towers over the 50 level, which indicates flat activity. According to PMI data, the construction sector has now expanded for 11 consecutive months. It's a sign of robust economic growth in the first quarter. The latest official data shows the sector expanded smartly in the first month of the year, but performed less well than originally reported in the final quarter of 2013. Investors are looking to buy pounds on dips on expectations the UK economy will do better than the euro zone in coming months.

Technical view-

Overview- GBP/USD has been in a down trend from February's high at 1.6823. In Asia the pair is trading at 1.6624. The pair rebounds from the lower levels at 1.6465. On a positional basis (daily chart), the pair is trading above the short- and long-term moving averages that is a bullish view in the long run until it breaks 1.5958. On the down side, the pair has minor support at 1.66, 1.6586 levels and major support at 1.6585 (50SMA). Breaks below this March low at 1.6465 are the crucial levels to hold for the bulls. Once broking this, the pair will go all the way down to 1.6252 and 1.62 levels (200EMA). In the long run (yearly basis), the pair has strong support between 1.60-1.5958 levels. We will re analyze the charts for up side levels once the pair comes out of a trading range between 1.6465-1.6718 levels.

Monthly basis-

The pair has been taking support around the 1.6618 levels. For the last 4 trading sessions, the pair has been making lows near the 1.6618 (April 01) and improving its low levels slowly. It gives a clear picture that, the pair will change its direction towards up side. Currently, it is looking for a strong base to show its power. The pair has strong support between 1.6618-1.6611-1.66-1.6585 (50SMA). I expect buyers from these levels.

On the upside, the pair has strong resistance at 1.6718 levels. In case of a day close above the purple line, it will fly up to 1.6786 on the same day and later 1.6823 and 1.6969 levels. I expect in 1 or 2 days the buying bids will start in this pair.

Intraday - buy with sl at 1.6611 for targets 1.6640 and 1.6666 (sl on a closing basis).