GBP/USD: UK’s construction sector growth eased to its lowest level in a year in August


GBPUSD Movement

For the 24 hours to 23:00 GMT, the GBP declined 0.26% against the USD and closed at 1.2927, following downbeat construction sector data in the UK.

Data showed that Britain’s Markit construction PMI unexpectedly eased to one-year low level of 51.1 in August, pressured by an investment slump in the commercial sector. Markets were expecting the PMI to advance to a level of 52.0, compared to a level of 51.9 in the previous month.

In the Asian session, at GMT0300, the pair is trading at 1.2926, with the GBP trading a tad lower against the USD from yesterday’s close.

Overnight data showed that the nation’s BRC retail sales across all sectors advanced 1.3% on an annual basis in August. In the prior month, retail sales across all sectors had recorded a rise of 0.9%.

The pair is expected to find support at 1.2904, and a fall through could take it to the next support level of 1.2883. The pair is expected to find its first resistance at 1.2956, and a rise through could take it to the next resistance level of 1.2987.

Trading trends in the Pound today is expected to be determined by the release of Britain’s Markit services PMI for August, due to release in a few hours.

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

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