GBPUSD Movement
On Friday, GBP fell 0.57% against the USD and closed at 1.5996, as the latest batch of dismal economic releases in the UK weighed on the recovery prospect of the Britain economy.
In the UK, a report showed that trade deficit in the nation widened to a reading of £3.268 billion in September, defying analysts’ expectations for the deficit to narrow to £2.700 billion from the previous month’s deficit of £3.252 billion. Separately, on a seasonally adjusted basis, construction output in the economy rose 5.8% (YoY) in September, less than market expectation for an 8.2% rise and compared to an increase of 4.1% registered in the preceding month.
The UK Pound further gave up ground against its US counterpart after a report revealed that the non-farm employment additions in the US surged more-than-expected to a level of 204,000 in October, compared to previous month’s reading of 163,000.
In the Asian session, at GMT0400, the pair is trading at 1.6014, with the GBP trading 0.11% higher from Friday’s close.
The pair is expected to find support at 1.5944, and a fall through could take it to the next support level of 1.5875. The pair is expected to find its first resistance at 1.6095, and a rise through could take it to the next resistance level of 1.6177.
The currency pair is showing convergence with its 20 Hr moving average and is trading below its 50 Hr moving average.
