GBPUSD Movement
For the 24 hours to 23:00 GMT, GBP fell 0.39% against the USD and closed at 1.5511, following series of weak economic data from the UK.
In the UK, gross domestic product fell 0.2% (YoY) during the first quarter of 2012, against the market expectation of a 0.1% fall. Additionally, UK’s current account deficit widened to £11.2 billion in Q1 FY2012, from a deficit of £7.2 billion in previous quarter. Moreover, Nationwide Building Society reported that house prices in the UK unexpectedly declined 0.6% (MoM) in June, against the market expectation of a 0.1% rise.
In the Asian session, at GMT0300, the pair is trading at 1.5628, with the GBP trading 0.75% higher from yesterday’s close.
Data released this morning showed that GfK consumer confidence in the UK remained unchanged at -29.0 in June.
The pair is expected to find support at 1.5532, and a fall through could take it to the next support level of 1.5437. The pair is expected to find its first resistance at 1.5676, and a rise through could take it to the next resistance level of 1.5725.
Trading trends in the pair today are expected to be determined by the release of UK index of services data and Bank of England Governor, Sir Mervyn King’s speech.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
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