For the 24 hours to 23:00 GMT, the GBP declined 0.38% against the USD and closed at 1.2436, after data showed that British construction sector lost momentum last month.
UK’s Markit construction PMI unexpectedly fell to a level of 52.2 in March, offering latest sign that the nation’s economy may be running out of steam. Markets expected the PMI to remain steady at a level of 52.5.
In the Asian session, at GMT0300, the pair is trading at 1.2441, with the GBP trading a tad higher against the USD from yesterday’s close.
The pair is expected to find support at 1.2407, and a fall through could take it to the next support level of 1.2374. The pair is expected to find its first resistance at 1.2484, and a rise through could take it to the next resistance level of 1.2528.
Looking ahead, market participants will keep a close watch on UK’s Markit services PMI for March, set to release in a few hours.
The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.
