A slightly better than expected number for the UK construction sector.: 62.4 points. Markit’s construction PMI for the UK was expected to slide from 62.6 in July to 62.1 points, still reflecting very strong growth. The construction sector still leads the current growth cycle.
GBP/USD started the new trading week on low ground, trading around 1..6824. The pair is now marginally higher to 1.6830. The surprise wasn’t huge, but after quite a few disappointing figures from the UK, this is good news.
Last week, the manufacturing PMI disappointed by showing slower growth. This dealt a blow to the pound, which was already weakening. Tomorrow we have the last of the series: services PMI. This is also the most important one, as it is the largest sector in the British economy.
Resistance awaits at 1.6840 followed by 1.6870. Support is at 1.6750. For more, see the GBPUSD forecast.
For a resumption of the gains, we would need a strong services PMI.
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