GBP/USD: UK’s construction sector activity cooled in June


GBPUSD Movement

For the 24 hours to 23:00 GMT, the GBP declined 0.12% against the USD and closed at 1.2928, on the back of downbeat construction sector data in the UK.

Data indicated that Britain’s Markit construction PMI dropped to a level of 54.8 in June, more than market expectations for a fall to a level of 55.0, further muddying the growth picture of economy. The PMI had recorded a level of 56.0 in the prior month.

In the Asian session, at GMT0300, the pair is trading at 1.2938, with the GBP trading 0.08% higher against the USD from yesterday’s close.

Overnight data revealed that the nation’s BRC shop price index fell 0.3% in June, following a drop of 0.4% in the previous month.

The pair is expected to find support at 1.2914, and a fall through could take it to the next support level of 1.2891. The pair is expected to find its first resistance at 1.2960, and a rise through could take it to the next resistance level of 1.2983.

Going ahead, market participants will focus on UK’s Markit services PMI for June, slated to release in a few hours.

The currency pair is trading above its 20 Hr moving average and showing convergence with its 50 Hr moving average.

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