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The construction sector in the UK continues to grow, and at a slightly higher pace than last month. Manufacturing PMI scored 54 points, a bit better than 53.7 that was expected and above 53.3 seen last month. GBP/USD bounces off support and rises cautiously within range.

GBP/USD is currently at 1.6340, up from 1.6320 before the publication. There were fears that construction would further slow down.

Yesterday, the manufacturing sector disappointed once again. The sector that once led the British recovery continued to slow down and fell to 52/1 points, below expectations. This sent the pound below support at 1.6430 and continued south since then.

GBP/USD traded at around 1.6320 before the release, holding above the 1.6280 to 1.63 region it settled above earlier. Further support is at 1.6110. Resistance is at 1.6430 followed by 1.6530.

For more on the pound, see the GBP USD forecast.

The chances of a rate hike during the summer are becoming quite slim. Perhaps this long awaited move to curb inflation will wait until November.

We still have the biggest and most important sector awaiting us: the services sector. If it will be like manufacturing, there will be quite a lot of pain for the pound. If it will be like the construction sector, sterling will hold up.