GBP/USD: UK’s manufacturing sector activity hit its highest level since August 2013 in November


GBPUSD Movement

For the 24 hours to 23:00 GMT, the GBP declined 0.38% against the USD and closed at 1.3470 on Friday, shrugging off robust manufacturing sector data in the UK.

Data indicated that UK’s Markit manufacturing PMI unexpectedly advanced to a more than four-year high level of 58.2 in November, confounding market consensus for a fall to a level of 56.5, thus suggesting that manufacturing sector would give a boost to the sluggish British economy in the last quarter of 2017. In the previous month, the PMI had registered a revised level of 56.6.

In the Asian session, at GMT0400, the pair is trading at 1.3472, with the GBP trading slightly higher against the USD from Friday’s close.

The pair is expected to find support at 1.3427, and a fall through could take it to the next support level of 1.3383. The pair is expected to find its first resistance at 1.3529, and a rise through could take it to the next resistance level of 1.3587.

Moving ahead, traders would keep a close watch on Britain’s Markit construction PMI for November slated to release in a few hours and a meeting between British Prime Minister, Theresa May, EU Chief Executive Jean-Claude Juncker and his Chief Brexit negotiator Michel Barnier.

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

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