GBP/USD: UK’s services sector growth came in stronger-than-estimated in December


GBPUSD Movement

For the 24 hours to 23:00 GMT, the GBP rose 0.29% against the USD and closed at 1.3551, on the heels of robust UK services sector report.

Data revealed that Britain’s Markit services PMI climbed more-than-anticipated to a level of 54.2 in December, highlighting resilient strength in the dominant services sector in an economy that is beset with uncertainty about the outlook. In the prior month, the PMI had recorded a reading of 53.8, while investors had envisaged for a rise to a level of 54.0. Moreover, the nation’s number of mortgage approvals for house purchases unexpectedly advanced to a level of 65.1K in November, defying market expectations for a fall to a level of 64.0K. Mortgage approvals had registered a revised reading of 64.9K in the prior month.

Other data revealed that the nation’s net consumer credit grew less-than-expected by £1.4 billion in November, after recording a revised similar rise in the preceding month, while markets had anticipated for a gain of £1.5 billion. On the other hand, the nation’s seasonally adjusted Nationwide house prices climbed 0.6% MoM in December, beating market expectations for a gain of 0.1% and compared to a rise of 0.1% in the previous month.

In the Asian session, at GMT0400, the pair is trading at 1.3565, with the GBP trading 0.1% higher against the USD from yesterday’s close.

The pair is expected to find support at 1.3530, and a fall through could take it to the next support level of 1.3494. The pair is expected to find its first resistance at 1.3585, and a rise through could take it to the next resistance level of 1.3604.

Amid no crucial macroeconomic releases in the UK today, investors would look forward to Britain’s industrial as well as manufacturing production data coupled with the nation’s total trade balance and NIESR GDP estimate report, all slated to release next week.

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

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