GBPUSD Movement
For the 24 hours to 23:00 GMT, GBP fell marginally against the USD and closed at 1.6127, after data showed that the construction activity in the UK remained in the contraction territory.
In the UK, construction purchasing managers’ index (PMI) on a seasonally adjusted basis rose to 49.5 in September, less than the market expectation for a rise to 49.9. Additionally, on a seasonally adjusted basis, the Nationwide house price index dropped 0.4% (MoM) in September, following a revised 1.1% rise in August.
In the Asian session, at GMT0300, the pair is trading at 1.6125, with the GBP trading marginally lower from yesterday’s close.
This morning, in the UK, the BRC shop price index rose 1.0% (YoY) in September, compared to a 1.1% rise in August.
The pair is expected to find support at 1.6102, and a fall through could take it to the next support level of 1.6080. The pair is expected to find its first resistance at 1.6167, and a rise through could take it to the next resistance level of 1.6210.
Trading trends in the pair today are expected to be determined by the release of purchasing manager index services and official reserves data in the UK.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
