For the 24 hours to 23:00 GMT, the GBP declined 1.21% against the USD and closed at 1.2928, amid reports that the European Union might revoke concessions made to the UK related to MiFID II, potentially weakening the country’s financial services sector.
In the Asian session, at GMT0400, the pair is trading at 1.2939, with the GBP trading 0.09% higher against the USD from yesterday’s close.
The pair is expected to find support at 1.2907, and a fall through could take it to the next support level of 1.2875. The pair is expected to find its first resistance at 1.2985, and a rise through could take it to the next resistance level of 1.3031.
Going ahead, traders would focus on UK’s Halifax house prices data for January, due to release in a few hours.
The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.