GBPUSD Movement
For the 24 hours to 23:00 GMT, the GBP rose 0.19% against the USD and closed at 1.3384, following upbeat retail sales report in the UK.
Data showed that UK’s retail sales rebounded 1.6% on a monthly basis in April, jumping by the most in 18 months, thus suggesting that fears about a slump in consumer spending may be overblown. Retail sales had fallen by a revised 1.1% in the previous month, while market participants had envisaged for a gain of 0.9%.
Separately, the Bank of England’s (BoE) Governor, Mark Carney, stated that Brexit negotiations were entering a crucial juncture and added that the central bank stands ready to pump more stimulus into the British economy if the negotiations result in a “disorderly” Brexit.
In the Asian session, at GMT0300, the pair is trading at 1.3370, with the GBP trading 0.10% lower against the USD from yesterday’s close.
The pair is expected to find support at 1.3339, and a fall through could take it to the next support level of 1.3309. The pair is expected to find its first resistance at 1.3411, and a rise through could take it to the next resistance level of 1.3453.
Trading trend in the Pound today is expected to be determined by the release of UK’s flash 1Q GDP numbers. Also, investors would closely monitor the nation’s BBA mortgage approvals for April and total business investment data for 1Q, both due to release in a few hours.
The currency pair is trading below its 20 Hr moving average and showing convergence with its 50 Hr moving average.
