GBPUSD Movement
For the 24 hours to 23:00 GMT on Friday, GBP rose 0.27% against the USD and closed at 1.5732.
On Friday, Standard & Poor’s Ratings Services affirmed UK’s triple-AAA sovereign rating and maintained a stable outlook. It expects the UK economy to pick up in the second half of this year, despite a slip into recession earlier in 2012.
In the Asian session, at GMT0300, the pair is trading at 1.5714, with the GBP trading 0.11% lower from Friday’s close.
This morning, the Hometrack stated that the UK house prices fell in July for the first time in 2012 and may extend their decline as a deepening recession curbs demand for homes. The Hometrack housing index fell 0.1% (MoM) in July, making it first fall of 2012.
Separately, the Lloyds business barometer index in the UK rose four points to -8 in July.
The pair is expected to find support at 1.5668, and a fall through could take it to the next support level of 1.5622. The pair is expected to find its first resistance at 1.5764, and a rise through could take it to the next resistance level of 1.5814.
Investors await mortgage approvals and consumer credit data in the UK.
The currency pair is showing convergence with its 20 Hr moving average and trading above its 50 Hr moving average.
