GBPUSD Movement
On Friday, GBP fell 0.73% against the USD and closed at 1.5927. The US Dollar gained ground against the UK Pound following upbeat US ISM manufacturing PMI data and after two Fed officials indicated that an improvement in the US labour market might strengthen the prospect for the central bank to taper the size of its stimulus package in the near future.
Meanwhile, in the UK, a report showed that the nation’s Markit manufacturing PMI declined to a level of 56.0 in October, roughly in line with market expectations for a fall to 56.1 and from a reading of 56.3 registered in the preceding month.
In the Asian session, at GMT0400, the pair is trading at 1.5923, with the GBP trading marginally lower from Friday’s close.
The pair is expected to find support at 1.5870, and a fall through could take it to the next support level of 1.5817. The pair is expected to find its first resistance at 1.6009, and a rise through could take it to the next resistance level of 1.6095.
Later today, CIPS/Markit is scheduled to release a report on the UK’s construction sector PMI, to get hints about the Sterling’s further direction. The market expects it to decline to a reading of 58.8 in October, from a level of 58.9 registered in September.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
