GBP/USD: Britain’s April consumer credit surged by the most since November 2016


GBPUSD Movement

For the 24 hours to 23:00 GMT, the GBP rose 0.10% against the USD and closed at 1.3297, after data showed that UK’s net consumer credit rose £1.8 billion in April, posting its highest increase since November 2016 and beating market expectations for a gain of £1.3 billion. Net consumer credit had registered a revised rise of £0.4 billion in the previous month.

Another set of data showed that the number of mortgage approvals for house purchases in Britain surprisingly declined to a level of 62.5K in April, confounding market expectations for a rise to a level of 63.5K and after registering a revised level of 62.8K in the prior month. Further, the nation’s seasonally adjusted Nationwide house prices unexpectedly fell 0.2% in May, defying market consensus for a gain of 0.2%. The Nationwide house prices had climbed by a revised 0.1% in the prior month.

In the Asian session, at GMT0300, the pair is trading at 1.3265, with the GBP trading 0.24% lower against the USD from yesterday’s close.

The pair is expected to find support at 1.3235, and a fall through could take it to the next support level of 1.3206. The pair is expected to find its first resistance at 1.3321, and a rise through could take it to the next resistance level of 1.3378.

Looking forward, traders will closely monitor UK’s Markit manufacturing PMI for May, slated to release in few hours.

The currency pair is trading below its 20 Hr and 50 Hr moving averages.

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