GBPUSD Movement
For the 24 hours to 23:00 GMT, the GBP rose 0.91% against the USD and closed at 1.2705 on Friday, after UK’s construction PMI unexpectedly advanced more-than-anticipated to a level of 52.8 in November, expanding at the fastest pace since March 2016, suggesting that the nation’s construction sector is on the recovery-path after going through a slump in the wake of the historic Brexit vote. Meanwhile, markets expected the index to drop to a level of 52.2, after recording a reading of 52.6 in the previous month.
In the Asian session, at GMT0400, the pair is trading at 1.2693, with the GBP trading 0.09% lower against the USD from Friday’s close.
Overnight data showed that UK’s BRC shop price index eased 1.7% MoM in November, compared to a similar drop recorded in the previous month.
The pair is expected to find support at 1.2610, and a fall through could take it to the next support level of 1.2526. The pair is expected to find its first resistance at 1.2757, and a rise through could take it to the next resistance level of 1.2820.
Ahead in the day, market participants will closely monitor UK’s Markit services PMI to get better insights into the nation’s economy.
The currency pair is showing convergence with its 20 Hr moving average and trading above its 50 Hr moving average.
