GBPUSD Movement
For the 24 hours to 23:00 GMT, the GBP declined 1.08% against the USD and closed at 1.3965, following dismal UK services sector report.
Data showed that Britain’s Markit services PMI declined more-than-anticipated to a level of 53.0 in January, expanding at its weakest pace since September 2016, thus further muddying the growth picture of an economy increasingly bogged down by Brexit worries. The PMI had recorded a level of 54.2 in the prior month, while market participants had envisaged for a fall to a level of 54.1.
In the Asian session, at GMT0400, the pair is trading at 1.3964, with the GBP trading slightly lower against the USD from yesterday’s close.
Overnight data revealed that UK’s BRC retail sales across all sectors advanced 0.6% on an annual basis in January, compared to a similar rise in the previous month, while markets had anticipated for a rise of 0.7%.
The pair is expected to find support at 1.3884, and a fall through could take it to the next support level of 1.3805. The pair is expected to find its first resistance at 1.4097, and a rise through could take it to the next resistance level of 1.4231.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
