GBPUSD Movement
For the 24 hours to 23:00 GMT, GBP fell 0.15% against the USD and closed at 1.6275, after the annual rate of inflation in the UK fell to a four-year low in November.
The UK National Statistics Office reported that the Consumer Price Index (CPI) in UK rose 2.1% (YoY) in November, lesser than market expectations and following a 2.2% rise recorded in the earlier month. Meanwhile, the Retail Price Index rose in line with analysts’ expectations, marking 0.1% gain in November, after the index was flat in October. Additionally, the non-seasonally adjusted monthly producer price index (PPI) input in the UK fell for a third consecutive month in November, registering 0.7% decline, more than market expectation of a 0.5% decline and after decreasing by 0.6% in October.
In the Asian session, at GMT0400, the pair is trading at 1.6286, with the GBP trading 0.07% higher from yesterday’s close.
The pair is expected to find support at 1.6221, and a fall through could take it to the next support level of 1.6157. The pair is expected to find its first resistance at 1.6344, and a rise through could take it to the next resistance level of 1.6403.
Trading trends in the pair today are expected to be determined by the minutes of the last BoE policy meeting to be released later today which would provide further hints on any conflicting views regarding the policy stance expressed by MPC members.
The currency pair is trading between its 20 Hr and 50 Hr moving averages.
