GBP/USD: UK’s Nationwide housing prices dropped in May

GBPUSD

GBPUSD Movement

For the 24 hours to 23:00 GMT, the GBP declined 3.67% against the USD and closed at 1.2550.

On the data front, UK’s Nationwide housing prices dropped 1.7% on a monthly basis in May, recording its biggest fall since 2009 and more than market forecast for a drop of 1.0%. In the previous month, house prices had recorded a revised rise of 0.9%. Additionally, consumer credit dropped by £7.4 billion in April, more than market expectations for a drop to a level of £4.5 billion and compared to a revised fall of £3.8 billion in the prior month. Moreover, mortgage approvals plunged to 15.8K in April, more than market expectations for a drop to a level of 23.8K and compared to a revised reading of 56.1K in the previous month. Furthermore, the BRC shop price index fell 2.4% on a yearly basis in April, compared to a drop of 1.7% in the previous month.

In the Asian session, at GMT0300, the pair is trading at 1.2576, with the GBP trading 0.21% higher against the USD from yesterday’s close.

The pair is expected to find support at 1.25, and a fall through could take it to the next support level of 1.2423. The pair is expected to find its first resistance at 1.2632, and a rise through could take it to the next resistance level of 1.2687.

Moving ahead, traders would keep a watch on UK’s Markit services PMI for May, slated to release in few hours.

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

This entry was posted in GBP/USD. Bookmark the permalink.

Comments are closed.