GBPUSD Movement
For the 24 hours to 23:00 GMT, the GBP declined 0.1% against the USD and closed at 1.3373, after the International Monetary Fund (IMF) lowered UK’s GDP growth forecast for this year and next, stating that political uncertainty arising from Brexit is weighing on growth.
The organisation has downgraded Britain’s economic growth from 1.7% to 1.6% for 2017, while expecting growth to slow further to 1.5% in 2018.
Nevertheless, it added that faster-than-expected progress towards a mutually beneficial Brexit outcome could boost confidence and spur growth in the economy.
In the Asian session, at GMT0400, the pair is trading at 1.3363, with the GBP trading 0.07% lower against the USD from yesterday’s close.
Overnight data revealed that UK’s GfK consumer confidence index unexpectedly eased to level of -13.0 in December, hitting its lowest level since December 2013, as households remained deeply pessimistic about the current economic situation due to heightened Brexit uncertainty. Market participants had anticipated the index to remain steady at a level of -12.0.
The pair is expected to find support at 1.3339, and a fall through could take it to the next support level of 1.3316. The pair is expected to find its first resistance at 1.3403, and a rise through could take it to the next resistance level of 1.3444.
Moving ahead, traders would keep a close watch on Britain’s public sector net borrowings data for November, due to release in a few hours.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
