GBPUSD Movement
For the 24 hours to 23:00 GMT on Friday, GBP rose 0.18% against the USD and closed at 1.5809. However, UK’s gross domestic product (GDP) retreated 0.3% (QoQ) in the Q4 FY2012, compared to a 0.9% rise recorded in the previous quarter. Meanwhile, the index of services climbed 0.6% (3M/3M) in November, compared to a 1.1% rise posted in the previous month.
On Sunday, UK’s Deputy Prime Minister, Nick Clegg stated that the coalition government would stick to plans for the biggest fiscal squeeze since World War II even after the UK economy contracted in the fourth quarter. He also added that Prime Minister David Cameron’s proposal to hold a referendum on Britain’s membership in the European Union may jeopardize growth.
In the Asian session, at GMT0400, the pair is trading at 1.5763, with the GBP trading 0.29% lower from Friday’s close.
Data released today morning indicated that house prices in the UK stood steady in January compared to a 0.1% (MoM) drop recorded in the previous month.
The pair is expected to find support at 1.5730, and a fall through could take it to the next support level of 1.5697. The pair is expected to find its first resistance at 1.5812, and a rise through could take it to the next resistance level of 1.5861.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
