GBP/USD: UK’s mortgage approvals increased to six-year high level in February


GBPUSD Movement

For the 24 hours to 23:00 GMT, the GBP declined 4.97% against the USD and closed at 1.2381.

On the data front, UK’s consumer credit fell to a level of £0.90 billion in February, less than market expectations for a reading of £1.10 billion. In the prior month, consumer credit had recorded revised rise of £1.11 billion. On the other hand, mortgage approvals unexpectedly increased to a level of 75.6K in February, notching its highest level since January 2014, defying market expectations for a drop to a level of 68.2K and compared to a revised increase of 71.3K in the previous month. Additionally, the GfK consumer confidence index fell less-than-expected to a level of -9.0 in March, compared to a reading of -7.0 in the previous month.

In the Asian session, at GMT0300, the pair is trading at 1.2340, with the GBP trading 0.33% lower against the USD from yesterday’s close.

The pair is expected to find support at 1.2243, and a fall through could take it to the next support level of 1.2146. The pair is expected to find its first resistance at 1.2439, and a rise through could take it to the next resistance level of 1.2538.

Moving ahead, traders would keep a watch on Britain’s current account and gross domestic product (GDP), both for 4Q2019, slated to release in a few hours. Later in the day, the BRC shop price index for February, will be eyed by traders.

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

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