FxWirePro: GBP/USD loses momentum but bullish setup remains

• GBP/USD initially gained but early gains fizzled as investors digested British construction activity data .

• Britain’s construction sector contracted for the ninth consecutive month in September, though the decline was the slowest in three months.

. The S&P Global Purchasing Managers' Index (PMI) for the UK construction sector climbed to a three-month high of 46.2 in September, up from 45.5 in August.

• The composite PMI, which combines last week’s data from the larger services and manufacturing sectors, slipped into contraction territory for the first time since April, falling to 49.7 from a prior 52.8.

• Meanwhile, investors across the UK and European Union were rattled by the unexpected resignation of France’s newly appointed Prime Minister, Sébastien Lecornu, and his government on Monday, just hours after he unveiled his cabinet lineup.

•   Immediate resistance is located at 1.3502( SMA 20), any close above will push the pair towards 1.3546(38.2%fib)

•  Strong support is seen at 1.3369(50%fib) and break below could take the pair towards 1.3321(Lower BB).

  Recommendation: Good to sell around 1.3400 , with stop loss of 1.3340 and target price of 1.3480