GBPUSD Movement
For the 24 hours to 23:00 GMT on Friday, GBP fell 0.94% against the USD and closed at 1.5020, amid a weak set of economic data from the UK.
UK’s seasonally adjusted manufacturing purchasing managers’ index (PMI) retreated to a reading of 47.9 in February, from a revised reading of 50.5 in January. The M4 money supply increased 0.9% (MoM) in January, following a 0.7% rise in December. On an annual basis, the M4 money supply fell 0.8% in January, from the 1.0% drop registered in the previous month. Also, Nationwide house prices rose 0.2% (MoM) in February, in line with market expectations. Separately, mortgage approvals fell unexpectedly to 54,719 approvals in January, from a revised 55,632 approvals in December. Market had expected a rise to 56,500 approvals. Also, total lending to individuals rose by £0.6 billion in January, while consumer credit increased by £0.4 billion in January.
In the Asian session, at GMT0400, the pair is trading at 1.5034, with the GBP trading marginally higher from Friday’s close.
This morning, UK’s Lloyds business sentiment index dropped to a reading of 13.0 in February, compared to a reading of 15.0 posted in January. Separately, Hometrack reported that, on a seasonally adjusted monthly basis, the average asking price for a home rose 0.1% in February, compared to a flat reading reported in the previous month.
The pair is expected to find support at 1.4950, and a fall through could take it to the next support level of 1.4867. The pair is expected to find its first resistance at 1.5152, and a rise through could take it to the next resistance level of 1.5271.
In the UK, investors hope for some relief from the much awaited construction PMI, scheduled for release later today.
The currency pair is showing convergence with its 20 Hr moving average and is trading below its 50 Hr moving average.
