Pound Fell On Weak UK Service PMI Data, Trading Higher This Morning

Pound Fell On Weak UK Service PMI Data, Trading Higher This Morning

For the 24 hours to 23:00 GMT, GBP fell 0.21% against the USD and closed at 1.5985, after data showed that the UK service sector grew at the slowest pace in nearly two years in October, raising concerns over the possibility of more easing by the Bank of England.

The services PMI in the UK dropped to a reading of 50.6 in October, from a reading of 52.2 in September.

In the Asian session, at GMT0400, the pair is trading at 1.5988, with the GBP trading marginally higher from yesterday’s close.

This morning, the British Retail Consortium (BRC) reported that retail sales in the UK fell 0.1% (YoY) in October, from a 1.5% rise in September.

The pair is expected to find support at 1.5951, and a fall through could take it to the next support level of 1.5913. The pair is expected to find its first resistance at 1.6032, and a rise through could take it to the next resistance level of 1.6077.

Trading trends in the pair today are expected to be determined by the release of UK’s industrial and manufacturing production data.