GBPUSD Movement
For the 24 hours to 23:00 GMT, the GBP fell 0.10% against the USD and closed at 1.6579, after retail sales in the UK grew at the slowest annual rate since November last year. On a monthly basis, the UK retail sales volumes rose 0.1% in July, compared to a revised advance of 0.2% in the previous month. Market forecasts were for a rise of 0.4%. Meanwhile, the UK NSO reported that the public sector net borrowing registered a deficit of £1.1 billion in July, the first deficit recorded since January. Analysts had expected a deficit of £1.7 billion.
In the Asian session, at GMT0300, the pair is trading at 1.6579, with the GBP trading flat from yesterday’s close.
The pair is expected to find support at 1.6561, and a fall through could take it to the next support level of 1.6544. The pair is expected to find its first resistance at 1.6599, and a rise through could take it to the next resistance level of 1.6620.
Going forward, a speech by the BoE’s Deputy Governor, Ben Broadbent, at the Fed Jackson Hole Symposium, would be closely watched.
The currency pair is showing convergence with its 20 Hr moving average and moving below its 50 Hr moving average.
