GBP/USD is likely to consolidate today after hitting a two-week low of 1.5560 on Thursday. Sterling sentiment is boosted by the stronger-than-expected UK June CIPS / Markit construction PMI of 58.1 (versus forecast 56.5). GBP/USD is also supported by weaker sentiment towards the US dollar (ICE spot dollar index last 96.08 versus 96.32 early Thursday). But GBP/USD upside is limited by sterling sales on buoyant EUR/GBP cross and diminished investor risk appetite.

Technical comment:

The daily chart is still negative-biased as the MACD and stochastics are bearish, five-day moving average is below 15-day moving average and is declining.

Trading recommendations:

The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 1.5560. A break of that target will move the pair further downwards to 1.5485. The pivot point stands at 1.5660. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to mo ve further to the upside. According to that scenario, long positions are recommended with the first target at 1.57 and the second target at 1.5740.

Resistance levels: 1.57 1.5740 1.5775

Support levels: 1.5560 1.5485 1.5415