GBPUSD Movement
For the 24 hours to 23:00 GMT, the GBP declined 0.19% against the USD and closed at 1.3318.
Earlier in the session, the Pound advanced against the USD, after latest data indicated that annual inflation in Britain jumped to its highest in nearly six years in November.
UK’s consumer price index (CPI) climbed more-than-expected by 3.1% on a yearly basis in November, suggesting that the Bank of England (BoE) needs to explore the possibility of raising interest rates in the near future as higher inflation will further pinch spending in a slowing economy. In the preceding month, the CPI had registered a rise of 3.0% in the prior month, while markets were expecting for a gain of 3.0%.
In the Asian session, at GMT0400, the pair is trading at 1.3322, with the GBP trading marginally higher against the USD from yesterday’s close.
The pair is expected to find support at 1.3291, and a fall through could take it to the next support level of 1.3259. The pair is expected to find its first resistance at 1.3367, and a rise through could take it to the next resistance level of 1.3411.
Going ahead, traders would closely monitor UK’s ILO unemployment rate and average weekly earnings for the three months to October, scheduled to be released in a few hours.
The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.
