GBP/USD: UK’s mortgage approvals surprisingly climbed to a two-year high level in April


GBPUSD Movement

For the 24 hours to 23:00 GMT, the GBP declined 0.20% against the USD and closed at 1.2657.

Data showed that UK’s BBA mortgage approvals surprisingly rose to a two-year high level of 42.9K in April, signalling recovery in the housing market growth and defying market expectations for a fall to a level of 39.5K. In the previous month, mortgage approvals had recorded a revised level of 40.6K.

In the Asian session, at GMT0300, the pair is trading at 1.2659, with the GBP trading slightly higher against the USD from yesterday’s close.

Overnight data indicated that the nation’s BRC shop price index advanced 0.8% on a yearly basis in May. In the prior month, the index had recorded a climb of 0.4%.

The pair is expected to find support at 1.2639, and a fall through could take it to the next support level of 1.2620. The pair is expected to find its first resistance at 1.2690, and a rise through could take it to the next resistance level of 1.2722.

In absence of key economic releases in UK today, investor sentiment would be determined by global macroeconomic events.

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

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