GBPUSD Movement
For the 24 hours to 23:00 GMT, GBP rose 0.23% against the USD and closed at 1.6535. However, the GBP initially came under pressure, after an official report showed that UK’s annual consumer inflation rate fell to 1.7% in February, the lowest level in more than four years, from previous month’s level of 1.9%. Separately, a report from British Bankers’ Association (BBA) showed that mortgage approvals in the UK fell unexpectedly to a level of 47,000 in February, compared to a reading of 49,300 reported in the previous month. Meanwhile, the Confederation of British Industry reported that retail sale volumes in the UK declined sharply to a reading of 13.0 in March, from previous month’s reading of 37.0, the highest level since the summer of 2012. However, the Office for National Statistics reported that house prices in the UK rose 6.8% in January, the fastest pace of rise in almost four years, compared to previous month’s level of 5.5%.
In the Asian session, at GMT0400, the pair is trading at 1.6534, with the GBP trading tad lower from yesterday’s close.
The pair is expected to find support at 1.6493, and a fall through could take it to the next support level of 1.6453. The pair is expected to find its first resistance at 1.6562, and a rise through could take it to the next resistance level of 1.6591.
Amid lack of major economic releases in the UK, later today, traders are expected to keep a tab on global economic news for further cues in the pair.
The currency pair is showing convergence with its 20 Hr moving average and is trading above its 50 Hr moving average.
