GBPUSD Movement
On Friday, GBP rose 0.38% against the USD and closed at 1.6409, after data revealed that the retail sales in the UK increased at the fastest monthly pace since June 2008. According to the Office for National Statistics, UK retail sales rose 2.6% (MoM) on a monthly basis in December, compared to a revised rise of 0.1% recorded in November.
The Bank of England (BoE) Monetary Policy Committee member, Dr. Ben Broadbent stated that he was optimistic about the recovery in the UK in 2014, citing an acceleration in business investment and an increase in consumer spending. He further added that the strength of the pound reflects the sluggish recovery in the European Union.
In the Asian session, at GMT0400, the pair is trading at 1.6416, with the GBP trading tad higher from yesterday’s close.
This morning, the Rightmove indicated that the house price index in UK climbed 1.0% in January, compared to a 1.9% decrease recorded in the previous month.
The pair is expected to find support at 1.6329, and a fall through could take it to the next support level of 1.6243. The pair is expected to find its first resistance at 1.6481, and a rise through could take it to the next resistance level of 1.6547.
Investors would turn all their attention to the Bank of England’s latest policy meeting’s minutes and the very important employment data, during the week.
The currency pair is showing convergence with its 20 Hr moving average and is trading above its 50 Hr moving average.
