GBP/USD: Pound reversed gains on upbeat US economic data

 

GBP USD

GBPUSD Movement

For the 24 hours to 23:00 GMT, GBP fell 0.22% against the USD and closed at 1.5535, as upbeat US economic data overshadowed the better-than-expected rise in the UK construction PMI. The greenback strengthened as the US trade deficit narrowed by 11.0% to $38.8 billion in March and as the initial jobless claims for state employment benefits dropped by 18.0K to a seasonally adjusted 324K in the week ended 27th April 2013, its lowest level since January 2008. Earlier, the Pound registered gains after construction PMI in the UK rose to a reading of 49.4 in April, higher compared to a level of 47.2 recorded in March.

In the Asian session, at GMT0300, the pair is trading at 1.5526, with the GBP trading marginally lower from yesterday’s close.

The pair is expected to find support at 1.5484, and a fall through could take it to the next support level of 1.5442. The pair is expected to find its first resistance at 1.5580, and a rise through could take it to the next resistance level of 1.5634.

Trading trends in the pair today are expected to be determined by the release of the Markit services PMI due later today.

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

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