GBPUSD Movement
For the 24 hours to 23:00 GMT, the GBP marginally rose against the USD and closed at 1.6745, as traders shrugged off a drop in the UK’s construction PMI data for May. Data showed that the construction PMI in the UK fell to a seven-month low reading of 60.0 last month, from a level of 60.8 recorded in April. Separately, data from the Nationwide showed that Britain house prices rose 11.1% (YoY) in May to a record high level of £186,512.
In the Asian session, at GMT0300, the pair is trading at 1.6724, with the GBP trading 0.13% lower from yesterday’s close.
Earlier today, a report indicated that the BRC-Nielsen shop prices in the UK declined for the thirteenth consecutive month in May, compared to the same rate of 1.4% decline reported in the previous month.
The pair is expected to find support at 1.6701, and a fall through could take it to the next support level of 1.6678. The pair is expected to find its first resistance at 1.6765, and a rise through could take it to the next resistance level of 1.6806.
Market participants are expected to keep a close tab Markit’s May service PMI data for the UK, slated for release later today.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
