The recently released manufacturing PMI for the United Kingdom sparked a massive selloff for the pound as the actual figure missed expectations. 

Take note that the BOE is currently watching business surveys very closely before they make their interest rate decision.

For today, the UK still has the construction PMI on tap and another disappointment could trigger another round of pound selling. The figure is expected to improve from 46.8 to 47.7, still indicating a contraction in the industry.

On the shorter-term time frames, GBP/USD shows tight consolidation around the 1.5100 handle as traders await the release of today’s set of data. A short below the Asian box around 1.5075 and aiming for the 1.5000 handle will be a good day trade if the construction PMI misses expectations.

On the other hand, going long above 1.5100 if the actual report comes in strong could also be a good day trade if price rallies back to 1.5150 or 1.5200 afterwards.

By Kate Curtis from Trader’s Way