COZforex: The pound remained higher against the USD on Monday, after data showed that US manufacturing activity contracted in November for the first time in 3 months, while new hopes for progress in Greece continued to support risk sentiment.

GBP/USD hit 1.6087 during U.S. morning trade, the pair's highest since November 2; the pair subsequently consolidated at 1.6082, climbing 0.44%. Analysts had expected the ISM index of purchasing managers to drop to 51.3 in November.

Market sentiment strengthened earlier, after Greece launched a scheme to buy back its debt from private investors, as part of an agreement to unlock a new bailout package worth EUR44 billion. Euro zone finance ministers were to hold talks in Brussels later in the day to discuss the terms of the new Greek aid deal, after Germany’s parliament gave it the green light on Friday. The ministers were also to discuss details of a EUR10 billion bailout for Cyprus.

In UK, data showed that the manufacturing purchasing managers' index rise to 3 months high of 49.1 last month from October's downwardly revised 47.3 and beating predictions for a reading of 48.1. However, the index remained below the 50.0 level which separates contraction from expansion for the seventh successive month.

Also Monday, data showed that the final euro zone manufacturing purchasing managers’ index remained unchanged at 46.2 in November, the highest level since March, but remaining in contraction territory for the 16th consecutive month.
Coz forex senior derivatives trader Daniel • Moloney said, GBP/USD is predicted to find its first resistance at 1.6072, and a rose through could take it to the next resistance line of 1.6104. Also, the pair is predicted to find support at 1.5999, and a fell through could take it to the next support line of 1.5957.

Trading trends in the pair today are predicted to be determined by the release of Markit manufacturing PMI in the UK. Daniel • Moloney said GBP/USD is trading above its 20 Hr and 50 Hr moving averages. (COZ forex UK)

COZ forex GBP/USD Chart: