UK Construction PMI Slips Below 50 Threshold – Quick Update on GBP/JPY Signal
Fellas, as you know the Markit releases a construction PMI (Purchasing Managers’ Index) index for UK and Eurozone. The Purchasing Managers’ Index is a leading indicator of economic health and measures economic growth with the help of a survey. The survey is of about 170 purchasing managers which asks respondents to rate the relative level of business conditions, including employment, production, new orders, prices, supplier deliveries, and inventories.
As per the Markit report, the UK construction companies showed that industry activity levels declined through February, which ended a ten month period of continued extension. The PMI figure for February fell to 49.5, which is below the minimum threshold to be considered as an optimistic economy. That’s now adding a selling pressure on GBP/JPY and we are already in a sell trade.
GBP/JPY – Technical Outlook
On the technical front, GBP/JPY is facing a strong resistance around 148.250 and the weaker than expected construction PMI figure can add further selling in the pair. On the lower side, the only hurdle is 148 support. We can see a sharp selling as soon as this level gets violated.
For your info, we are holding a sell position below 148.20 with a stop loss above 148.49 and take profit around 147.70
Let’s hope for the best!
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