GBP/USD: Britain’s construction sector activity dipped to a six-month low level in September


GBPUSD Movement

For the 24 hours to 23:00 GMT, the GBP declined 0.47% against the USD and closed at 1.2982.

Data indicated that the UK’s Markit construction PMI unexpected declined to a six-month low level of 52.1 in September, compared to market consensus for an unchanged reading. The PMI had registered a level of 52.9 in the previous month. Moreover, Britain’s seasonally adjusted Nationwide house prices index rebounded 0.3% on a monthly basis in September, higher than market expectations for a rise of 0.2%. The index had registered a drop of 0.5% in the prior month.

In the Asian session, at GMT0300, the pair is trading at 1.2999, with the GBP trading 0.13% higher against the USD from yesterday’s close.

The pair is expected to find support at 1.2946, and a fall through could take it to the next support level of 1.2893. The pair is expected to find its first resistance at 1.3047, and a rise through could take it to the next resistance level of 1.3095.

Trading trend in the Sterling today is expected to be determined by UK’s Markit services PMI for September, scheduled to release in a few hours.

The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.

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