GBP/USD: UK’s services sector returned to growth in January


GBPUSD Movement

For the 24 hours to 23:00 GMT, the GBP marginally declined against the USD and closed at 1.3078 on Friday. Meanwhile, in January, the preliminary manufacturing PMI advanced to a nine-month high of 49.80, compared to market expectations of an advance to 48.90. In the prior month, the manufacturing PMI had registered a level of 47.50. Further, the flash services PMI climbed to a 16-month high of 52.90, in January, higher than market expectations of a rise to 51.00. The services PMI had recorded a reading of 50.00 in the previous month.

In the Asian session, at GMT0400, the pair is trading at 1.3058, with the GBP trading 0.15% lower against the USD from Friday’s close.

The pair is expected to find support at 1.3016, and a fall through could take it to the next support level of 1.2973. The pair is expected to find its first resistance at 1.3137, and a rise through could take it to the next resistance level of 1.3215.

Moving ahead, investors would look forward to the release of the BBA Mortgage Approvals for December.

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

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