GBPUSD Movement
On Friday, GBP fell 0.10% against the USD and closed at 1.6349. However, the British Pound was supported for a brief period after an official data revealed that the annual gross domestic product (GDP) in UK surged 1.9% on a yearly basis in the Q3 2013, following a 1.3% rise recorded in the previous quarter. Meanwhile, another report indicated that UK public sector net borrowing increased to a level of £14.8 billion in November, more than market forecast of a level of £13.4 billion and following a revised level of £7.4 billion reported in October. Additionally, the current account deficit widened to £20.7 billion in the third quarter of 2013, more than market expectations and following a revised deficit of £6.2 billion recorded in the Q2 2013.
On Friday, the Standard & Poor’s confirmed Britain’s triple A credit rating, however it warned that the agency could cut the top-notch ranking if the country’s economic recovery was not sustained.
In the Asian session, at GMT0400, the pair is trading at 1.6348, with the GBP trading tad lower from Friday’s close.
The pair is expected to find support at 1.6310, and a fall through could take it to the next support level of 1.6273. The pair is expected to find its first resistance at 1.6391, and a rise through could take it to the next resistance level of 1.6435.
With no economic releases from the UK scheduled today, trading trends in the pair would be determined by releases from the US.
The currency pair is showing convergence with its 20 Hr moving average and is trading below its 50 Hr moving average.
