GBPUSD Movement
For the 24 hours to 23:00 GMT, GBP fell 0.38% against the USD and closed at 1.6170, as an unexpected fall in the number of British Bankers’ Association’s (BBA) mortgage approvals during October, fuelled concerns on the recovery prospect of the Britain economy. The BBA reported that mortgage approvals in the UK dropped to a level of 42,800 in October, defying market expectation for the mortgage approvals to rise to 45,200 in the month from previous month’s level of 43,200.
Negative sentiment was also fuelled after former Bank of England (BoE) policymaker, Adam Posen, in an interview on Bloomberg Television, warned that the UK government’s programme to aid first-time home buyers might result into a house-price bubble and eventually provoke a crisis in the Pound.
In the Asian session, at GMT0400, the pair is trading at 1.6156, with the GBP trading 0.09% lower from yesterday’s close.
The pair is expected to find support at 1.6117, and a fall through could take it to the next support level of 1.6077. The pair is expected to find its first resistance at 1.6212, and a rise through could take it to the next resistance level of 1.6267.
Market participants keenly await the release of UK’s inflation report hearings, due later today, to gauge the British economy.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
