GBP/USD: May’s Speech, due later today, will be closely monitor


GBPUSD Movement

For the 24 hours to 23:00 GMT, the GBP rose 0.16% against the USD and closed at 1.3773.

Data showed that UK’s Markit manufacturing PMI dropped slightly to 55.2 in February, reaching its lowest level in 8 months and lower than market expectations for a drop to a level of 55.0. The manufacturing PMI had recorded a reading of 55.3 in the previous month. Moreover, the nation’s net consumer credit recorded a rise of GBP1.4 billion in January, meeting market expectations. In the prior month, net consumer credit had advanced by a revised GBP1.6 billion. Further, the number of mortgage approvals for house purchases registered a rise to 67.5 K in January, compared to market expectations for an advance to 62.0 K. In the previous month, number of mortgage approvals for house purchases had recorded a revised reading of 61.7 K.

Other data indicated that Britain’s seasonally adjusted Nationwide house prices unexpectedly fell by 0.3% MoM in February, compared to a revised gain of 0.8% in the prior month. Market participants had anticipated for a rise of 0.1%.

In the Asian session, at GMT0400, the pair is trading at 1.3788, with the GBP trading 0.11% higher against the USD from yesterday’s close.

The pair is expected to find support at 1.3736, and a fall through could take it to the next support level of 1.3683. The pair is expected to find its first resistance at 1.3817, and a rise through could take it to the next resistance level of 1.3845.

Trading trend in the Pound today is expected to be determined by UK Prime Minister’s Brexit speech due later today which is likely to decide UK’s future with the European Union.

The currency pair is trading above its 20 Hr and showing convergence with its 50 Hr moving average.

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