GBPUSD Movement
For the 24 hours to 23:00 GMT, the GBP rose 0.41% against the USD and closed at 1.2921, after data showed a robust performance in UK’s services sector.
UK’s Markit services PMI unexpectedly advanced to a four-month high level of 55.8 in April, suggesting that the economy is regaining momentum after a lacklustre performance in first quarter. The PMI had registered a level of 55.0 in the prior month, whereas markets expected for a fall to a level of 54.5. Moreover, the nation’s net consumer credit advanced £1.6 billion in March, surpassing market consensus for a rise of £1.2 billion. In the prior month, net consumer credit had climbed by a revised £1.5 billion.
On the other hand, the nation’s number of mortgage approvals for house purchases declined more-than-anticipated to a level of 66.8K in March, hitting its lowest level in six months. In the prior month, mortgage approvals had recorded a revised level of 67.9K.
In the Asian session, at GMT0300, the pair is trading at 1.2913, with the GBP trading 0.06% lower against the USD from yesterday’s close.
The pair is expected to find support at 1.2851, and a fall through could take it to the next support level of 1.2790. The pair is expected to find its first resistance at 1.2952, and a rise through could take it to the next resistance level of 1.2992.
With no economic releases in UK today, market participants will anxiously await BoE’s interest rate decision, scheduled next week. Also, investors will look forward to Britain’s industrial and manufacturing production along with the nation’s construction output, NIESR GDP estimate and trade balance data, all set to release next week.
The currency pair is showing convergence with its 20 Hr moving average and trading above its 50 Hr moving average.
