For the 24 hours to 23:00 GMT, the GBP rose 0.79% against the USD and closed at 1.3200 on Friday, following upbeat economic data from the UK.
Macroeconomic data revealed that Britain’s manufacturing production rebounded more-than-expected by 0.5% on a monthly basis in July, rising for the first time in seven months, suggesting that an upturn in the industrial sector was on the cards. Investors had envisaged manufacturing production to rise by 0.3%, after posting a flat reading in the prior month. Moreover, the nation’s industrial production climbed 0.2% MoM in July, meeting market consensus and following a gain of 0.5% in the previous month. On the other hand, the nation’s construction output fell 0.9% on a monthly basis in July, dipping to its lowest in three months and compared to a drop of 0.1% in the prior month.
Other economic data revealed that UK’s total trade deficit surprisingly dropped to a level of £2.87 billion in July, defying market expectations for the nation’s deficit to widen to a level of £3.25 billion and following a revised deficit of £2.91 billion in the previous month. Further, NIESR estimated that the nation’s gross domestic product (GDP) climbed 0.4% in the three months ended August, compared to a rise of 0.2% predicted in the three months to July.
In the Asian session, at GMT0300, the pair is trading at 1.3183, with the GBP trading 0.13% lower against the USD from Friday’s close.
The pair is expected to find support at 1.3115, and a fall through could take it to the next support level of 1.3046. The pair is expected to find its first resistance at 1.3238, and a rise through could take it to the next resistance level of 1.3292.
In absence of any macroeconomic releases in the UK today, investors will look forward to global macroeconomic news for further direction.
The currency pair is showing convergence with its 20 Hr moving average and trading above its 50 Hr moving average.