GBP/USD: Britain’s service sector activity expanded at a slower pace in February


GBPUSD Movement

For the 24 hours to 23:00 GMT, the GBP declined 1.22% against the USD and closed at 1.2869, on potential rate cut fears.

On the macro front, UK’s market services PMI fell more-than-expected to 53.2 in February, due to negative impact on sales from the coronavirus outbreak and compared to 53.9 in the previous month. The preliminary figures had indicated a drop to a level of 53.3.

In the Asian session, at GMT0400, the pair is trading at 1.2870, with the GBP trading slightly higher against the USD from yesterday’s close.

The pair is expected to find support at 1.2802, and a fall through could take it to the next support level of 1.2733. The pair is expected to find its first resistance at 1.2907, and a rise through could take it to the next resistance level of 1.2943.

Trading trend in the pair today is expected to be determined by UK’s BBA mortgage approvals for January, slated to release in a few hours. Moreover, the Bank of England Governor, Mark Carney’s speech will be eyed by investors.

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

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