GBP/USD: UK’s services PMI contracted for the first time in 2.5 years in March


GBPUSD Movement

For the 24 hours to 23:00 GMT, the GBP rose 0.37% against the USD and closed at 1.3177, on fresh hopes of another Brexit extension.

In economic news, Britain’s services PMI declined to a level of 48.9 in March, contracting for the first time in 2.5 years, amid mounting uncertainties over Brexit. In the previous month, the PMI had recorded a reading of 51.3, while market participants had envisaged for a fall to a level of 50.9.

In the Asian session, at GMT0300, the pair is trading at 1.3174, with the GBP trading slightly lower against the USD from yesterday’s close.

The pair is expected to find support at 1.3132, and a fall through could take it to the next support level of 1.3090. The pair is expected to find its first resistance at 1.3206, and a rise through could take it to the next resistance level of 1.3238.

In absence of key economic releases in UK today, investor sentiment would be determined by global macroeconomic events.

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

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