GBPUSD Movement
For the 24 hours to 23:00 GMT, the GBP rose 0.36% against the USD and closed at 1.2413.
In economic news, UK’s total trade deficit expanded more-than-anticipated to a level of £5.2 billion in September, following a revised deficit of £3.8 billion in the prior month while markets anticipated the nation to post a deficit of £4.0 billion.
Meanwhile, the European Commission, in its latest economic forecast, projected the UK economy to pick up pace this year, growing by 1.9%, from an earlier forecast of 1.8%, but nearly halved its economic growth outlook for 2017, due to the impact of the Brexit vote to leave the Euro-bloc. It now expects the UK economy to grow by 1.0% in 2017, much lower than 1.9% projected earlier. Meanwhile, UK’s inflation is expected to rise rapidly to 2.5% next year, much higher than the 1.7% forecast made in May, mostly driven by the depreciation of the domestic currency.
In the Asian session, at GMT0400, the pair is trading at 1.2416, with the GBP trading marginally higher against the USD from yesterday’s close.
Overnight data showed that, UK’s RICS house price balance unexpectedly rose to a level of 23.0 in October, rising at the fastest pace since April 2016, whereas markets expected it to remain steady at a revised level of 18.0, recorded in the prior month.
The pair is expected to find support at 1.2331, and a fall through could take it to the next support level of 1.2246. The pair is expected to find its first resistance at 1.2524, and a rise through could take it to the next resistance level of 1.2632.
With no economic releases in UK today, investor sentiment would be governed by global macroeconomic factors.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
