UK Construction PMI data rose strongly in July, reaching 55.3, from 52.2 in June, Scotiabank’s FX strategist Shaun Osborne notes.

Bears push to test the 1.2610/15 area

“The July result was the strongest in more than two years. The data had little impact on the Pound Sterling (GBP) which is the weakest-performing currency among the core majors so far today. At the margin, images of widespread social unrest across the UK over the past week could be weighing on sentiment.”

“Sterling was somewhat immune from yesterday’s volatility, with the uptick in the GBP seen intraday leaving the trend decline in spot since the middle of June uninterrupted. Losses are extending this morning, with the GBP pushing under mild support at 1.2700/10 at writing. A retest of the late June lows around 1.2610/15 looks likely at this rate. Resistance is 1.2840/50.”