GBP/USD: UK’s consumer confidence slipped in October


GBPUSD Movement

For the 24 hours to 23:00 GMT, the GBP rose 0.52% against the USD and closed at 1.3206.

Macroeconomic data showed that the number of mortgage approvals for house purchases fell less than anticipated to a level of 66.2K in September in the UK, compared to a fall to 66.0K expected by market players. Number of mortgage approvals had recorded a revised reading of 67.2K in the previous month. Moreover, UK net consumer credit advanced more than expected by £1.6 billion in September, compared to a revised advance of £1.8 billion in the prior month.

Overnight data disclosed that Britain’s consumer confidence index eased to a level of -10.0 in October from a reading of -9.0 in the previous month, indicating that consumers remained downbeat about the economy amid ongoing Brexit talks. Market expectations was for the index to fell to -10.0.

In the Asian session, at GMT0400, the pair is trading at 1.3204, with the GBP trading marginally lower from yesterday’s close.

The pair is expected to find support at 1.3149, and a fall through could take it to the next support level of 1.3093. The pair is expected to find its first resistance at 1.3238, and a rise through could take it to the next resistance level of 1.3271.

With no major economic release in the UK today, investor sentiment would be governed by global macroeconomic factors.

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

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