For the 24 hours to 23:00 GMT, the GBP rose 0.39% against the USD and closed at 1.2789 on Friday, following stronger-than-expected domestic economic data.
On the data front, UK’s Markit manufacturing PMI climbed to 53.6 in July, recording its highest level since March 2019 and more than expectations for a rise to a level of 52.0. In the previous month, the PMI had recorded a reading of 50.1. Additionally, the Markit services PMI rose to 5-year high level of 56.6 in July, more than market forecast for a rise to a level of 51.1 and compared to a reading of 47.1 in the previous month. Moreover, retail sales jumped 13.9% on a monthly basis in June, surpassing market forecast for a rise of 8.0% and compared to a revised rise of 12.3% in the previous month.
In the Asian session, at GMT0300, the pair is trading at 1.2846, with the GBP trading 0.45% higher against the USD from Friday’s close.
The pair is expected to find support at 1.2758, and a fall through could take it to the next support level of 1.2670. The pair is expected to find its first resistance at 1.2893, and a rise through could take it to the next resistance level of 1.2940.
Amid lack of macroeconomic releases in the UK today, investor sentiment would be determined by global macroeconomic factors.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
