GBP/USD: UK’s construction sector growth hit 11-month low in July


GBPUSD Movement

For the 24 hours to 23:00 GMT, the GBP rose 0.09% against the USD and closed at 1.3221, despite data showing a sharp decline in UK’s construction activity.

On the macro front, Britain’s Markit construction PMI fell more-than-anticipated to a level of 51.9 in July, expanding at its weakest pace in eleven months, as heightened political uncertainty along with concerns over Brexit led to a slowdown in new orders. In the prior month, the PMI had recorded a level of 54.8, while market participants had envisaged for a fall to a level of 54.0.

In the Asian session, at GMT0300, the pair is trading at 1.3215, with the GBP trading marginally lower against the USD from yesterday’s close.

The pair is expected to find support at 1.3190, and a fall through could take it to the next support level of 1.3164. The pair is expected to find its first resistance at 1.3246, and a rise through could take it to the next resistance level of 1.3276.

Looking forward, investors will pay attention to the Bank of England’s (BoE) interest rate decision, scheduled later in the day. The central bank is widely expected to stand pat on monetary policy. Also, Britain’s Markit services PMI for July, set to be released in a few hours, will be on investors’ radar.

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

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