GBP/USD: UK’s mortgage approvals surprisingly rose to a 9-month high level in October


GBPUSD Movement

For the 24 hours to 23:00 GMT, the GBP declined 0.34% against the USD and closed at 1.2784.

On the macro front, UK’s net consumer credit climbed to £0.9 billion in October, rising at its slowest pace since May 2015 and compared to a revised similar rise in the previous month. Market participants had anticipated net consumer credit to climb to £1.0 billion. Moreover, the nation’s mortgage approvals for house purchases unexpectedly rose to a 9-month high level of 67.1K in October, defying market expectations for a fall to a level of 64.5K. Number of mortgage approvals for house purchases had registered a revised reading of 65.7K in the prior month.

In the Asian session, at GMT0400, the pair is trading at 1.2780, with the GBP trading a tad lower against the USD from yesterday’s close.

Overnight data showed that UK’s GfK consumer confidence index slid to a 11-month low level of -13.0 in November, more than market expectations for a drop to -11.0. In the previous month, the index had recorded a level of -10.0. On the contrary, the nation’s Lloyds business barometer advanced to 24.0% in November. In the prior month, the business barometer had recorded a reading of 19.0%.

The pair is expected to find support at 1.2741, and a fall through could take it to the next support level of 1.2701. The pair is expected to find its first resistance at 1.2835, and a rise through could take it to the next resistance level of 1.2889.

Trading trend in the Sterling today is expected to be determined by UK’s Nationwide house price index for November, slated to release in a while.

The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.

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