Growth in the construction sector in the UK was stronger in January. Data from IHS Markit showed that construction activity rose from 44.4 in December to 48.4 in January. The data comes on the back of the manufacturing sector also posting a strong rebound during the month. Sterling, however, remains muted to the economic data amid the Brexit negotiations.
GBP/USD Bounces off Support – But Will it Hold?
The cable drifted down to briefly test the 1.2960 level of support. But prices were rejected quickly leading to a modest bound in price. A firm test of this support level could build the basis for an upside bias. Therefore, there is a risk of a decline back to this level. Alternately, if the rebound holds, then we expect a move back to the 1.3100 level.
