GBPUSD Movement
For the 24 hours to 23:00 GMT, GBP rose 0.51% against the USD and closed at 1.6076, as an unexpected rise in the UK’s retail sales bolstered the recovery prospect of the Britain economy.
The UK CBI distributive trades survey showed that its retail sales index advanced to a reading of 34.0 in September, defying analysts’ expectation for a fall to a level of 24.0 and compared to a reading of 27.0 registered in the previous month.
In the Asian session, at GMT0300, the pair is trading at 1.6073, with the GBP trading tad lower from yesterday’s close.
The pair is expected to find support at 1.6005, and a fall through could take it to the next support level of 1.5936. The pair is expected to find its first resistance at 1.6116, and a rise through could take it to the next resistance level of 1.6158.
Trading trends in the pound is expected to be determined by UK’s Gross Domestic Product (GDP) data set to release today. Market participants expects the final official estimate of gross domestic product for the second quarter to register a growth of 0.7%, unchanged from the second estimate and compared to a 0.3% growth seen in the first quarter. Investors are also expected to keep an eye on UK’s total business investment and Gfk consumer confidence data, scheduled to release later today.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
