For the 24 hours to 23:00 GMT, the GBP declined 0.20% against the USD and closed at 1.2621.
In economic news, UK’s consumer price index (CPI) eased 2.3% on an annual basis in November, marking its lowest level in 20-months and at par with market consensus. In the previous month, the CPI had advanced 2.4%. Additionally, the non-seasonally adjusted output price inflation slowed to 3.1% on an annual basis in November. In the prior month, the output producer price index had registered a rise of 3.3%. Further, the nation’s retail price index fell 3.2% on an annual basis in November, meeting market expectations. In the prior month, the index had registered a rise of 3.3%. Moreover, the house price inflation eased to 2.7% on a yearly basis in October, compared to a revised gain of 3.0% in the preceding month. Meanwhile, the CBI trends total orders dropped to a level of 8.0 in December, less than market expectations and compared to a level of 10.0 in the previous month.
In the Asian session, at GMT0400, the pair is trading at 1.2622, with the GBP trading slightly higher against the USD from yesterday’s close.
The pair is expected to find support at 1.2593, and a fall through could take it to the next support level of 1.2564. The pair is expected to find its first resistance at 1.2665, and a rise through could take it to the next resistance level of 1.2708.
Moving ahead, investors would keep an eye on the Bank of England’s interest rate decision along with UK’s retail sales for November, slated to release in a few hours.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.