GBP/USD: UK’s mortgage approvals declined to its lowest in 9 months in June


GBPUSD Movement

For the 24 hours to 23:00 GMT, the GBP rose 0.5% against the USD and closed at 1.3201.

In economic news, data showed that Britain’s mortgage approvals for house purchases dropped to a level of 64.7K in June, hitting its lowest level in nine months, thus pointing to a loss of momentum in the nation’s housing market. Mortgage approvals had recorded a revised reading of 65.1K in the previous month, while market participants had expected for a drop to a level of 65.0K. On the other hand, the nation’s net consumer credit registered a rise of £1.5 billion in June, at par with market expectations and compared to a revised rise of £1.8 billion in the prior month.

In the Asian session, at GMT0300, the pair is trading at 1.3217, with the GBP trading 0.12% higher against the USD from yesterday’s close.

The pair is expected to find support at 1.3135, and a fall through could take it to the next support level of 1.3052. The pair is expected to find its first resistance at 1.3262, and a rise through could take it to the next resistance level of 1.3306.

Trading trend in the Pound today is expected to be determined by the release of UK’s Markit manufacturing PMI and Nationwide house prices data, both for July, slated in a few hours.

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

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