GBPUSD Movement
For the 24 hours to 23:00 GMT, the GBP rose 1.31% against the USD and closed at 1.4421, after UK’s seasonally adjusted Markit manufacturing PMI unexpectedly advanced to a 3-month high level of 52.9 in January, whereas investors expected it to fall to a level of 51.6, from a revised reading of 52.1 in the previous month. Additionally, the nation’s mortgage approvals surprisingly rose to a level of 70.8K in December, touching its 4-month high level, after recording a revised increase of 70.4K in the preceding month and compared to market expectations of a fall to a level of 69.6K.
On the other hand, the nation’s net consumer credit fell more than expected to a level of £1.2 billion in December, the weakest since May 2015. Meanwhile markets expected it to decline to a level of £1.3 billion, from £1.5 billion in the previous month.
In the Asian session, at GMT0400, the pair is trading at 1.4414, with the GBP trading marginally lower from yesterday’s close.
The pair is expected to find support at 1.4289, and a fall through could take it to the next support level of 1.4165. The pair is expected to find its first resistance at 1.4492, and a rise through could take it to the next resistance level of 1.4571.
Moving ahead, investors will look forward to UK’s construction PMI for January, scheduled to be released in a few hours.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.