GBP/USD: UK’s construction PMI surprisingly rose to its highest level in 4-months in November


GBPUSD Movement

For the 24 hours to 23:00 GMT, the GBP declined 0.08% against the USD and closed at 1.2716.

On macro front, UK’s construction PMI unexpectedly climbed to a 4-month high level of 53.4 in November, cofounding market consensus for a decline to a level of 52.5. In the preceding month, the PMI had recorded a reading of 53.2.

Yesterday, the Bank of England Governor, Mark Carney in his parliament speech, defended the central bank’s analysis that a no-deal Brexit would severely impact and cause recession in the economy. Further, he stated that the probability of the worst-case Brexit scenario was low. Meanwhile, he added that food prices could jump as much as 10% if there was a 25% plunge in the British pound due to a no-deal Brexit.

In the Asian session, at GMT0400, the pair is trading at 1.2706, with the GBP trading 0.08% lower against the USD from yesterday’s close.

The pair is expected to find support at 1.2630, and a fall through could take it to the next support level of 1.2554. The pair is expected to find its first resistance at 1.2811, and a rise through could take it to the next resistance level of 1.2916.

Moving forward, traders would await UK’s Markit services PMI for November, slated to release in a few hours.

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

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