Forex: GBP/USD rebounds after UK CBI orders and PSNB disappointment

FXstreet.com (Barcelona) - After the London opening tumble to test the 1.5200 handle on rising UK PSNB and finding some stability at 1.5220, the GBP/USD is now rebounding since the release of UK CBI orders and as the London morning ends and gives investors’ some space ahead of the New York opening and US data. The pair is currently at 1.5252, still below yesterday’s close at 1.5297.

UK CBI orders fell even more than expected, by -25% in April, instead of the -14% consensus. Data had fallen by -15% in the prior month. UK Public Sector Net Borrowing was expected to rise to £14.000B in March, but came in at £16.747B. February data was revised higher too, from £4.356B to £7.196B.

Among the US data that include US Markit manufacturing PMI, Richmond Fed manufacturing and Redbook Index, TD Securities analysts commented on US retail sales: “March new home sales are expected to recover slightly from their decline in Feb, but we see the risks here biased towards a flat reading and slight disappointment even though the trend in US housing continues to be towards ongoing improvement”, wrote analyst Annette Beacher.

“My outlook here is negative, for a final dip towards 1.5160-80 before reversal and a rise through 1.5367, en route to 1.5505”, wrote Deltastock.com analyst Stoyan Mihaylov.