GBPUSD Movement
For the 24 hours to 23:00 GMT, the GBP rose 0.69% against the USD and closed at 1.2321, after Markit construction PMI in the UK unexpectedly climbed to a level of 54.2 in December, expanding at its fastest pace in nine-months, thus boosting optimism over the health of the nation’s construction industry. Markets anticipated the PMI to ease to a level of 52.6, following a level of 52.8 in the previous month. Moreover, the nation’s net consumer credit unexpectedly advanced by £1.9 billion in November, rising to its eleven-year high level and compared to market expectations for an advance of £1.6 billion. In the previous month, net consumer credit had registered a revised rise of £1.7 billion. Meanwhile, mortgage approvals for house purchases rose to a level of 67.5K in November, lower than market expectations of a rise to a level of 68.5K and after recording a revised level of 67.4K in the previous month.
In the Asian session, at GMT0400, the pair is trading at 1.2319, with the GBP trading a tad lower against the USD from yesterday’s close.
The pair is expected to find support at 1.2248, and a fall through could take it to the next support level of 1.2176. The pair is expected to find its first resistance at 1.2371, and a rise through could take it to the next resistance level of 1.2422.
Going ahead, investors will look forward to UK’s Markit services PMI for December, due to release in a few hours.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
