GBPUSD Movement
On Friday, GBP rose 0.47% against the USD and closed at 1.5878. The US Dollar gave up ground as negative sentiment was fuelled after the US retail sales failed to meet market expectation and after the White House denied an earlier report published by the Nikkei newspaper that US President, Barack Obama, was set to nominate Lawrence Summers as the next head of the Federal Reserve.
Meanwhile, in the UK, Royal Institution of Chartered Surveyors (RICS), in its report published on Friday, called on the Bank of England (BoE) to cap its annual house price inflation at 5% in order to “prevent another housing bubble, reckless bank lending and a dangerous build up in household debt.”
In the Asian session, at GMT0300, the pair is trading at 1.5954, with the GBP trading 0.48% higher from Friday’s close, after house prices in the UK rose and as the agency Rightmove raised its 2013 house price forecast to 6% from 4%, after recording strong activity in the UK housing sector.
Earlier today, a report showed that the Rightmove house price index rose 4.5% (YoY) in September, following a 5.5% rise registered in the previous month.
The pair is expected to find support at 1.5834, and a fall through could take it to the next support level of 1.5714. The pair is expected to find its first resistance at 1.6016, and a rise through could take it to the next resistance level of 1.6078.
Investors are expected to keep a close watch on the release of the Bank of England’s (BoE) quarterly bulletin on the market developments and monetary policy operations in the UK for the third quarter, slated for later today.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
