GBPUSD Movement
For the 24 hours to 23:00 GMT, the GBP rose 0.94% against the USD and closed at 1.5343, on the back of upbeat construction PMI and mortgage approval data in the UK.
Data released showed that UK construction PMI jumped to a reading of 55.9 in May, following a 22-month low of 54.2 recorded in the preceding month, while markets expected it to advance to a reading of 55.0, suggesting that Prime Minister, David Cameron’s unexpectedly decisive election victory proved to be a boon for the nation. Additionally, UK mortgage approvals for house purchases climbed to 68.10 K, registering its highest level in more than a year in April and compared to a revised reading of 61.90 K recorded in prior month.
In the Asian session, at GMT0300, the pair is trading at 1.5349, with the GBP trading marginally higher from yesterday’s close.
The pair is expected to find support at 1.5229, and a fall through could take it to the next support level of 1.5110. The pair is expected to find its first resistance at 1.5419, and a rise through could take it to the next resistance level of 1.5489.
Going forward, currency traders will eye Britain’s service sector growth data scheduled in a few hours, with output in May expected to remain on a stable upward trajectory.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
