GBPUSD Movement
For the 24 hours to 23:00 GMT, GBP rose 0.28% against the USD and closed at 1.6445, despite the mortgage lender, Halifax indicating that the British house prices fell unexpectedly last month, the first drop since the start of 2013, easing some pressure on a fast-rising market. The Halifax house price index in the UK on a monthly basis fell 0.6% in December, compared to a revised rise of 0.9% recorded in the preceding month. Markets were expecting Halifax house prices in December to rise 0.9%.
Separately, the Bank of England (BoE), in its credit conditions survey hinted a significant rise in mortgage supply and enhanced availability of business loans in the first quarter of 2014. Furthermore, the central bank also highlighted that demand for secured lending by households in the UK rose at its fastest pace in the previous quarter.
In the Asian session, at GMT0400, the pair is trading at 1.6447, with the GBP trading tad higher from yesterday’s close.
The pair is expected to find support at 1.6403, and a fall through could take it to the next support level of 1.6360. The pair is expected to find its first resistance at 1.6482, and a rise through could take it to the next resistance level of 1.6518.
Investors would closely scrutinise the BoE’s monetary policy meeting, later today for any alterations in the central bank’s policy stance in the near future.
The currency pair is showing convergence with its 20 Hr moving average and is trading above its 50 Hr moving average.
