GBPUSD Movement
For the 24 hours to 23:00 GMT, the GBP declined 0.62% against the USD and closed at 1.3875, after data showed that UK’s Halifax house price index registered an unexpected drop of 0.6% on a monthly basis in January, defying market expectations for a gain of 0.2%. The index had registered a revised fall of 0.8% in the prior month.
Yesterday, the European Commission forecasted that Britain’s economic growth would slow to slow to 1.4% this year, before slipping to 1.1% next year.
In the Asian session, at GMT0400, the pair is trading at 1.3889, with the GBP trading 0.1% higher against the USD from yesterday’s close.
Overnight data indicated that Britain’s RICS house price balance remained unchanged at a level of 8.0 in January, compared to market expectations of a drop to a level of 5.0.
The pair is expected to find support at 1.3827, and a fall through could take it to the next support level of 1.3766. The pair is expected to find its first resistance at 1.3972, and a rise through could take it to the next resistance level of 1.4056.
Trading trend in the Pound today is expected to be determined by the Bank of England’s (BoE) interest rate decision, scheduled to be announced later in the day. The central bank is widely anticipated to keep monetary policy steady.
The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.
