For the 24 hours to 23:00 GMT, the GBP declined 2.06% against the USD and closed at 1.2759, amid caution surrounding the Brexit negotiations between Britain and the European Union.
On the data front, UK’s Markit manufacturing PMI jumped to 51.7 in February, as domestic demand increased and compared to a level of 50.0 in the previous month. The preliminary figures had indicated a rise to a level of 51.8. Additionally, mortgage approvals climbed to 70.9K in January, notching its highest level since February 2016 and compared to a revised reading of 67.9K in the previous month. Further, consumer credit increased by £1.2 billion in January, following a revised reading of £1.3 billion in the previous month.
Separately, the Organisation for Economic Cooperation and Development (OECD) expects UK to grow 0.8% each in 2020 and 2021.
In the Asian session, at GMT0400, the pair is trading at 1.2775, with the GBP trading 0.13% higher against the USD from yesterday’s close.
The pair is expected to find support at 1.2726, and a fall through could take it to the next support level of 1.2678. The pair is expected to find its first resistance at 1.2837, and a rise through could take it to the next resistance level of 1.2900.
Trading trend in the pair today is expected to be determined by UK’s Markit construction PMI for February, slated 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.
