GBPUSD Movement
For the 24 hours to 23:00 GMT, GBP fell 0.56% against the USD and closed at 1.6050, as investors refrained from taking riskier bets ahead of Fed policy decision, due on Wednesday. Sentiments were also weighed by the Bank of England (BoE) Governor, Mark Carney’s comments that the UK economy is being driven primarily by the housing market even though house prices and output remain patchy across the UK.
In economic news, a report showed that mortgage approvals in the UK surged to a level of 66,735 in September, surpassing analysts’ call for a rise to 66,000 from a reading of 63,396 registered in the earlier month. However, another report revealed that the UK consumer credit advanced by £0.411 billion in September, less than market consensus for a rise of £0.700 billion and compared to a previous month’s level of £0.620 billion. Similarly, on a monthly basis, net lending to individuals in the UK rose by £1.4 billion in August, less than market expectation for a surge of £2.5 billion and compared to a level of £1.6 billion registered in the preceding month.
In the Asian session, at GMT0400, the pair is trading at 1.6041, with the GBP trading 0.06% lower from yesterday’s close.
The pair is expected to find support at 1.6000, and a fall through could take it to the next support level of 1.5960. The pair is expected to find its first resistance at 1.6101, and a rise through could take it to the next resistance level of 1.6162.
Amid lack of economic releases in the UK, traders are expected to keep a tab on global economic news for further guidance in the pair.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
