GBP/USD: UK’s service sector growth slowed to nearly 1-year low level in August


GBPUSD Movement

For the 24 hours to 23:00 GMT, the GBP rose 0.88% against the USD and closed at 1.3041, as investors brushed-off disappointing UK services sector report.

Data indicated that Britain’s Markit services PMI declined more-than-expected to a level of 53.2 in August, dipping to an eleven-month low level and suggesting that the nation’s services sector, which initially withstood the shock of the Brexit vote, is losing momentum. Markets were anticipating the PMI to fall to a level of 53.5, compared to a reading of 53.8 in the previous month.

In the Asian session, at GMT0300, the pair is trading at 1.3036, with the GBP trading a tad lower against the USD from yesterday’s close.

The pair is expected to find support at 1.2949, and a fall through could take it to the next support level of 1.2861. The pair is expected to find its first resistance at 1.3084, and a rise through could take it to the next resistance level of 1.3131.

In absence of any macroeconomic releases in the UK today, investor sentiment will be governed by global macroeconomic news.

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

This entry was posted in GBP/USD. Bookmark the permalink.

Comments are closed.