GBPUSD Movement
For the 24 hours to 23:00 GMT, the GBP declined slightly against the USD and closed at 1.2963 on Friday.
In economic news, the second estimate of UK’s gross domestic product (GDP) rose by 0.7% on a quarterly basis in 2Q 2016, more than market expectations for an advance of 0.6%. In the prior quarter, the nation grew by 0.4% while the preliminary figures had recorded an expansion of 0.6%. Additionally, the nation’s seasonally adjusted Nationwide house prices gained by 0.3% MoM in September, at par with market expectations and following a rise of 0.6% in the previous month. Meanwhile, the nation’s current account deficit rose less-than-expected to a level of £28.7 billion in 2Q 2016, from a revised current account deficit of £27.0 billion in the prior quarter whereas markets expected the nation to register a deficit of £30.6 billion.
In the Asian session, at GMT0300, the pair is trading at 1.2930, with the GBP trading 0.25% lower against the USD from Friday’s close.
The pair is expected to find support at 1.2891, and a fall through could take it to the next support level of 1.2851. The pair is expected to find its first resistance at 1.2996, and a rise through could take it to the next resistance level of 1.3061.
Going ahead, market participants would closely monitor UK’s Markit manufacturing PMI for September, scheduled to release in a few hours.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
