GBPUSD Movement
For the 24 hours to 23:00 GMT, GBP rose 0.27% against the USD and closed at 1.6433. The UK inflation unexpectedly slowed its annual pace in December, matching the Bank of England (BoE)’s target for first time in 4 years. The UK Office for National Statistics revealed that the annual consumer inflation rate dropped to 2.0% in December, compared to a 2.1% rate recorded in the previous month. Markets had expected inflation to rise to 2.1% in December. Other data indicated that on a non-seasonally adjusted monthly basis, the producer price index (PPI) input in the UK rose 0.1% in December, compared to a 0.7% decrease recorded in the previous month. Markets had expected the PPI input to drop 0.2% in December. Additionally, the house price index in the UK rose 5.4% in November, compared to a 5.5% increase recorded in the previous month, defying expectations for a 5.9% rise in November.
In the Asian session, at GMT0400, the pair is trading at 1.6422, with the GBP trading 0.07% lower from yesterday’s close.
The pair is expected to find support at 1.6371, and a fall through could take it to the next support level of 1.6319. The pair is expected to find its first resistance at 1.6470, and a rise through could take it to the next resistance level of 1.6517.
With no major economic data from the UK today, releases from the US would influence trading in the pair.
The currency pair is trading just below its 20 Hr moving average and is showing convergence with its 50 Hr moving average.
