GBP/USD: UK’s construction sector activity unexpectedly rose to a 17-month high level in May


GBPUSD Movement

For the 24 hours to 23:00 GMT, the GBP marginally declined against the USD and closed at 1.2881 on Friday.

On Friday, data showed that the UK construction PMI unexpectedly climbed to a level of 56.0 in in May, expanding at its fastest rate in 17 months, as low interest rate and strong labour markets underpinned residential building activity. Market had expected the index to fall to 52.6, after it registered a level of 53.1 in the previous month.

In the Asian session, at GMT0300, the pair is trading at 1.2864, with the GBP trading 0.13% lower from Friday’s close.

The pair is expected to find support at 1.2839, and a fall through could take it to the next support level of 1.2813. The pair is expected to find its first resistance at 1.2897, and a rise through could take it to the next resistance level of 1.2929.

Ahead in the day, Britain’s services sector activity data for May, would be closely assessed by market participants for further direction in the local currency.

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

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