GBPUSD Movement
For the 24 hours to 23:00 GMT, GBP rose 0.36% against the USD and closed at 1.6098, as ongoing political gridlock between the Democrats and Republicans continued to weigh on the dollar.
In the UK, a report showed that optimism in the nation’s financial industry rose to a 17 year high in the third quarter. The Confederation of British Industry (CBI) reported that 53% of the respondents said that they were more optimistic about their business in the third quarter, up from 31% witnessed in the previous quarter.
In the Asian session, at GMT0300, the pair is trading at 1.6080, with the GBP trading 0.11% lower from yesterday’s close. Earlier today, a report showed that the RICS housing price balance surged to the highest level since mid-2002 to 54% in September, more than analysts’ expectation for a rise to 45% and compared to a 41% increase seen in the previous month. However, the BRC retail sales monitor came in at 0.7% (YoY) in September, defying market expectation for a 2.0% rise and following a 1.8% increase seen in the preceding month.
The pair is expected to find support at 1.6036, and a fall through could take it to the next support level of 1.5992. The pair is expected to find its first resistance at 1.6113, and a rise through could take it to the next resistance level of 1.6146.
Amid lack of major economic releases in the UK, investors are expected to keep a close watch on global economic news to get further guidance in the pair.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
