GBPUSD Movement
On Friday, GBP fell 0.15% against the USD and closed at 1.6174. Investors favoured the US Dollar after a report revealed that the durable goods orders in the US rose more-than-expected in the month of September, adding to sings that the US economic growth was gaining momentum.
Elsewhere, in the UK, investors cheered an official report that showed the nation’s Gross Domestic Product (GDP) grew 0.8% (QoQ) in the third quarter, in line with market expectations and compared to a 0.7% growth seen in the previous quarter. Similarly on an annual basis, UK’s GDP rose 1.5% (YoY) in the third quarter, at par with market estimate and following a similar rate of growth witnessed in the second quarter.
In the Asian session, at GMT0400, the pair is trading at 1.6183, with the GBP trading 0.06% higher from Friday’s close. Earlier today, a report revealed that, on a seasonally adjusted basis, the Hometrack housing prices in the UK rose 0.5% (MoM) in October, following a similar price rise recorded in the preceding month.
The pair is expected to find support at 1.6139, and a fall through could take it to the next support level of 1.6095. The pair is expected to find its first resistance at 1.6238, and a rise through could take it to the next resistance level of 1.6293.
Traders are expected to keep a close watch on the release of CBI distributive trades survey – realized data, due later today, for further direction in the UK Pound.
The currency pair is showing convergence with its 20 Hr moving average and is trading just below its 50 Hr moving average.
