GBPUSD Movement
For the 24 hours to 23:00 GMT, GBP fell 0.24% against the USD and closed at 1.5805, after the construction Purchasing Managers’ Index (PMI) in the UK dropped to a reading of 51.4 in January, marking the lowest level in four months.
In the Asian session, at GMT0400, the pair is trading at 1.5811, with the GBP trading 0.04% higher from yesterday’s close.
This morning, the National Institute of Economic and Social Research (NIESR) stated that the British economy is likely to return to technical recession in the first half of 2012. The think tank forecasts the economy to contract 0.1% in 2012.
The pair is expected to find support at 1.5778, and a fall through could take it to the next support level of 1.5745. The pair is expected to find its first resistance at 1.5851, and a rise through could take it to the next resistance level of 1.5892.
GBP is likely to receive increased market attention, with Purchasing Manager Index Services data due to be released later today.
The currency pair is trading converging with its 20 Hr and 50 Hr moving averages.
