GBPUSD Movement
On Friday, the GBP rose 0.23% against the USD and closed at 1.6645, as UK’s fourth-quarter GDP revised data came in-line with market estimates. UK GDP rose 2.7% (YoY) in the fourth-quarter, following a 1.9% increase registered in the previous quarter. Separately, data revealed that total business investment in the UK economy registered an upbeat rise of 8.7% (YoY) in the fourth-quarter, compared to a 5.3% drop in the previous quarter. However, positive sentiment for the British Pound was somewhat dampened after the UK current account deficit came in much worse than expected in the fourth quarter.
In the Asian session, at GMT0300, the pair is trading at 1.6629, with the GBP trading 0.10% lower from Friday’s close.
The pair is expected to find support at 1.6601, and a fall through could take it to the next support level of 1.6574. The pair is expected to find its first resistance at 1.6654, and a rise through could take it to the next resistance level of 1.6680.
Traders are expected to keep a tab on the UK’s consumer credit, mortgage approvals and net lending to individuals data, due for release later today.
The currency pair is showing convergence with its 20 Hr moving average and is trading just above its 50 Hr moving average.
