GBPUSD Movement
For the 24 hours to 23:00 GMT, GBP fell 0.40% against the USD and closed at 1.5571, after mortgage approvals in the UK dropped to their lowest level in more than a year, raising the speculation that the central bank would resume stimulus measures.
The BBA mortgage approvals in the UK fell to 30,238 in May, from a revised figure of 32,103 in April. Meanwhile, the Confederation of British Industry (CBI), in its latest monthly Distributive Trades Survey reported that the retail sales balance in the UK rose unexpectedly to 42.0 in June, marking the fastest growth since December 2010.
In the Asian session, at GMT0300, the pair is trading at 1.5583, with the GBP trading 0.08% higher from yesterday’s close.
The pair is expected to find support at 1.5539, and a fall through could take it to the next support level of 1.5495. The pair is expected to find its first resistance at 1.5634, and a rise through could take it to the next resistance level of 1.5685.
Trading trends in the pair today are expected to be determined by the release of gross domestic product, total business investment and Gfk consumer confidence data in the UK.
The currency pair is showing convergence with its 20 Hr moving average and is trading below its 50 Hr moving average.
