GBPUSD Movement
For the 24 hours to 23:00 GMT, GBP fell 0.12% against the USD and closed at 1.5710, as the release of weak economic data from the UK, raised concerns that UK’s recession is deepening.
In the UK, the mortgage approvals in the UK fell to 44,192 in June, the lowest since December 2010. Additionally, M4 money supply in the UK fell 1.6% (MoM) in June, compared to a 0.1% drop in the previous month. Moreover, the Confederation of British Industry indicated that the realized trades fell to a reading of 11 in June, from a reading of 42 in May.
In the Asian session, at GMT0300, the pair is trading at 1.5722, with the GBP trading 0.08% higher from yesterday’s close.
This morning, GfK NOP reported that consumer confidence in the UK remained steady at -29 in July, in-line with market expectation.
The pair is expected to find support at 1.5687, and a fall through could take it to the next support level of 1.5651. The pair is expected to find its first resistance at 1.5744, and a rise through could take it to the next resistance level of 1.5765.
Trading trends in the pair today are expected to be determined by the release of BRC shop price index.
The currency pair is trading just above 20 Hr and 50 Hr moving averages.
