GBPUSD Movement
For the 24 hours to 23:00 GMT, the GBP rose 0.07% against the USD and closed at 1.7161, after data showed that UK construction PMI rose more-than-expected to a four-month high reading of 62.6 in June, from a level of 60.0 in May. Separately, a report from the Nationwide, revealed that house prices in Britain economy 1.0% (MoM) to an average price of £188,903 in June, surpassing the peak level of 2007. Meanwhile, noting the recent rise in UK house prices, a BoE policymaker, Andy Haldane, opined that an interest rate hike in the UK economy would be a last resort to avert a possible asset price bubble in the economy.
In the Asian session, at GMT0300, the pair is trading at 1.7158, with the GBP trading marginally lower from yesterday’s close.
The pair is expected to find support at 1.7139, and a fall through could take it to the next support level of 1.7120. The pair is expected to find its first resistance at 1.7178, and a rise through could take it to the next resistance level of 1.7198.
During the later course of the day, market participants are expected to keep a tab on Markit Economics’ service PMI data, to gauge the level of activities in the UK service sector.
The currency pair is showing convergence with its 20 Hr moving average and is trading just above its 50 Hr moving average.
