GBPUSD Movement
For the 24 hours to 23:00 GMT, GBP rose 0.30% against the USD and closed at 1.5971 as upbeat UK construction PMI bolstered investors’ confidence in the recovery of the Britain economy. The report showed that the UK’s construction sector PMI rose to a reading of 59.4 in October, defying market estimate for the index to remain unchanged at previous month’s level of 58.9.
In the Asian session, at GMT0400, the pair is trading at 1.5969, with the GBP trading tad lower from yesterday’s close. Earlier today, the BRC reported that its UK retail sales monitor rose a less-than-expected 0.8% (YoY) in October, following a 0.7% increase seen in the preceding month.
The pair is expected to find support at 1.5931, and a fall through could take it to the next support level of 1.5893. The pair is expected to find its first resistance at 1.5996, and a rise through could take it to the next resistance level of 1.6023.
Market participants would keenly watch the release of Markit’s PMI data for UK’s service sector, which analysts’ expects to decline to a reading of 59.8 in October, from a level of 60.3 registered in the previous month.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
