GBP/USD: Britain’s manufacturing growth hits a 25-month low in August


GBPUSD Movement

For the 24 hours to 23:00 GMT, the GBP declined 0.39% against the USD and closed at 1.2872, after UK’s manufacturing PMI fell to a 2-year low in August.

Data showed that UK’s manufacturing PMI dropped to 52.8 in August, hitting its lowest reading since April 2016 and compared to a revised reading of 53.8 in July. Market participants had expected the PMI to fall to a level of 53.9.

In the Asian session, at GMT0300, the pair is trading at 1.2859, with the GBP trading 0.10% lower against the USD from yesterday’s close.

On the data front, the BRC retail sales across all sectors advanced 0.2% on a yearly basis in August. Retail sales across all sectors had registered a rise of 0.5% in the previous month.

The pair is expected to find support at 1.2831, and a fall through could take it to the next support level of 1.2802. The pair is expected to find its first resistance at 1.2911, and a rise through could take it to the next resistance level of 1.2962.

Trading trend in the Pound today is expected to be determined by UK’s Markit construction PMI for August, slated to release in a few hours.

The currency pair is trading below its 20 Hr and 50 Hr moving averages.

This entry was posted in GBP/USD. Bookmark the permalink.

Comments are closed.