GBPUSD Movement
For the 24 hours to 23:00 GMT, the GBP declined 0.19% against the USD and closed at 1.2476, following weaker than expected UK inflation data.
In economic news, UK’s consumer price inflation slowed to 1.7% on an annual basis in August, marking its lowest level in three years. In the previous month, the CPI had recorded a gain of 2.1%. Further, the retail price index rose 2.6% on an annual basis in August, at par with market expectations. The index had registered a gain of 2.8% in the prior month. Moreover, the nation’s house price index climbed 0.7% on an annual basis in July, rising at its weakest pace in 7 years and less than market expectations for an increase of 1.2%. The index had recorded a revised rise of 1.4% in the prior month.
In the Asian session, at GMT0300, the pair is trading at 1.2467, with the GBP trading 0.07% lower against the USD from yesterday’s close.
The pair is expected to find support at 1.2433, and a fall through could take it to the next support level of 1.2400. The pair is expected to find its first resistance at 1.2506, and a rise through could take it to the next resistance level of 1.2546.
Looking ahead, investors would await the Bank of England’s interest rate decision along with UK’s retail sales for August, set to release in a few hours.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
