For the 24 hours to 23:00 GMT, the GBP rose 0.46% against the USD and closed at 1.3849, after latest data indicated that UK’s services sector activity surged to a 4-month high level in February.
UK’s Markit services PMI climbed more-than-estimated to a level of 54.5 in February, expanding at its fastest pace since October 2017 and indicating that the sector regained momentum. The PMI had registered a reading of 53.0 in the previous month, while markets were anticipating for a rise to a level of 53.3.
In the Asian session, at GMT0400, the pair is trading at 1.3844, with the GBP trading slightly lower against the USD from yesterday’s close.
Overnight data revealed that UK’s BRC retail sales across all sectors advanced 0.6% on an annual basis in February, beating market expectations for a gain of 0.5%. In the prior month, retail sales across all sectors had registered a similar rise.
The pair is expected to find support at 1.3782, and a fall through could take it to the next support level of 1.3719. The pair is expected to find its first resistance at 1.3892, and a rise through could take it to the next resistance level of 1.3939.
The currency pair is showing convergence with its 20 Hr moving average and trading above its 50 Hr moving average.