GBPUSD Movement
For the 24 hours to 23:00 GMT, the GBP declined 0.97% against the USD and closed at 1.4304, after UK’s consumer price index (CPI) fell more-than-expected by 0.8% MoM in January, whereas markets expected for a drop of 0.7%, following a gain of 0.1% in the previous month. On the other hand, on an annual basis, CPI edged up to a 12-month high level of 0.3%, meeting market expectations and following a rise of 0.2% in the previous month.
In other economic news, the nation’s retail price index fell more-than-anticipated by 0.7% MoM in January, after recording a gain of 0.3% in the previous month and compared to market expectations for a fall of 0.6%.
In the Asian session, at GMT0400, the pair is trading at 1.4301, with the GBP trading marginally lower from yesterday’s close.
The pair is expected to find support at 1.4212, and a fall through could take it to the next support level of 1.4123. The pair is expected to find its first resistance at 1.4453, and a rise through could take it to the next resistance level of 1.4606.
Going ahead, market participants will look forward to UK’s ILO unemployment rate data for December, scheduled to be released in a few hours.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
