GBPUSD Movement
For the 24 hours to 23:00 GMT, the GBP declined 0.85% against the USD and closed at 1.4845, after official data revealed that the UK inflation rate dropped to zero in February on an annual basis, thereby strengthening the case for the Bank of England to keep interest rates at a record low for more time.
The UK inflation rate on a yearly basis remained unchanged in February, compared to a rise of 0.30% in the prior month. Markets were anticipating the consumer price index to climb 0.10%. Similarly, the UK’s core consumer price index climbed 1.20% in February on an annual basis, lower than market expectations for a rise of 1.30%. The core consumer price index had advanced 1.40% in the previous month. However, the nation’s consumer price index on a monthly basis advanced 0.30% in the UK, meeting market expectations on a monthly basis in February. The consumer price index had recorded a drop of 0.90% in the prior month.
Other data showed that the retail price index in the UK registered a rise of 1.00% in February, compared to an advance of 1.10% in the previous month. Market expectations were for the retail price index to rise 0.90%. Additionally, the house price index in the UK climbed 8.40% in January on an annual basis, compared to an advance of 9.80% in the previous month. Markets were expecting the house price index to advance 8.90%.
In the Asian session, at GMT0300, the pair is trading at 1.4873, with the GBP trading 0.19% higher from yesterday’s close.
The pair is expected to find support at 1.4807, and a fall through could take it to the next support level of 1.4741. The pair is expected to find its first resistance at 1.4962, and a rise through could take it to the next resistance level of 1.5052.
Trading trends in the pair today are expected to be determined by the release of BBA Loans for House Purchase to be released later during the day.
The currency pair is showing convergence with its 20 Hr moving average and is trading below its 50 Hr moving average.
