GBPUSD Movement
For the 24 hours to 23:00 GMT on Friday, GBP fell 0.63% against the USD and closed at 1.5877, amid disappointing UK retail sales figures.
Retail sales in the UK unexpectedly declined 0.1% (MoM) in December, after staying flat in November. Market had expected a 0.2% rise in December.
Additionally, the Pound came under pressure, after the Bank of England Monetary Policy Committee (MPC) External Member, Ian McCafferty indicated that he doubted that more bond-buying would boost spending in the UK’s depressed economy. Instead, he suggested that new policies should target specific problems in the economy, in the same way as Funding for Lending was set up to address the shortage of cheap credit.
In the Asian session, at GMT0400, the pair is trading at 1.5870, with the GBP trading marginally lower from Friday’s close.
This morning, the Rightmove reported that its UK house price index advanced 2.4% annually in January, compared to a 1.4% rise recorded in the previous month.
The pair is expected to find support at 1.5810, and a fall through could take it to the next support level of 1.5750. The pair is expected to find its first resistance at 1.5964, and a rise through could take it to the next resistance level of 1.6058.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
