GBPUSD Movement
For the 24 hours to 23:00 GMT, the GBP declined 0.22% against the USD and closed at 1.2368, after UK’s industrial production unexpectedly dropped by 0.4% MoM in September, compared to a similar fall in the prior month while markets expected industrial production to record a flat reading. On the contrary, the nation’s manufacturing production accelerated to a five month high level, after it climbed by 0.6% MoM in September, surpassing investor consensus for an advance of 0.4% and compared to a rise of 0.2% in the prior month. Additionally, leading think tanker, NIESR estimated that UK’s economy grew 0.4% in the three months to October, after recording a rise of 0.5% in the three months to September.
In the Asian session, at GMT0400, the pair is trading at 1.2486, with the GBP trading 0.95% higher against the USD from yesterday’s close.
The pair is expected to find support at 1.2390, and a fall through could take it to the next support level of 1.2295. The pair is expected to find its first resistance at 1.2540, and a rise through could take it to the next resistance level of 1.2595.
Moving forward, market participants would closely monitor UK’s total trade balance for September, slated to release in a few hours.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
