GBPUSD Movement
For the 24 hours to 23:00 GMT, GBP rose 0.57% against the USD and closed at 1.5180, after UK retail sales recorded a jump in February and the public sector borrowing came in smaller-than-expected in February.
Yesterday, retail sales in the UK advanced 2.1% (MoM) in February, its sharpest gain in almost three years and much more than the expected 0.4% rise, while retail sales, excluding automobile sales, gained 1.9% (MoM) in February, against the expected 0.6% rise. Moreover, public sector net borrowing climbed by £4.4 billion in February, compared to revised repayment of £10.3 billion in January. Meanwhile, public sector net borrowing excluding financial interventions rose by £2.8 billion in February, from a revised £11.9 billion repayment registered in January. Also, public finances (public sector net cash requirement) declined by £1.5 billion in February, compared to a revised decline of £20.7 billion recorded in January.
Separately, the Confederation of British Industry (CBI), in its latest industrial trends survey has reported that, total order book balance in the UK dropped to a reading of -15.0 in March, in line with the market expectations, and compared to a level of -14.0 in February.
In the Asian session, at GMT0400, the pair is trading at 1.5187, with the GBP trading marginally higher from yesterday’s close.
The pair is expected to find support at 1.5127, and a fall through could take it to the next support level of 1.5068. The pair is expected to find its first resistance at 1.5228, and a rise through could take it to the next resistance level of 1.5270.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
