GBPUSD Movement
For the 24 hours to 23:00 GMT, GBP marginally fell against the USD and closed at 1.7153, after data revealed that the nation’s dominant services sector dropped to a 3-month low level of 57.7 in June, compared to a reading of 58.6 reported in the previous month. Markets had expected the index to decline to a reading of 58.3 in June.
Yesterday, the Bank of England Deputy Governor, Sir Jon Cunliffe cautioned that soaring house prices in the UK is a big threat to the economy as the average cost of a home has gone beyond the incomes of the people, thereby suggesting a drastic rise in the amount of debt that mortgage holders have.
In the Asian session, at GMT0300, the pair is trading at 1.7166, with the GBP trading 0.08% higher from yesterday’s close.
The pair is expected to find support at 1.7122, and a fall through could take it to the next support level of 1.7077. The pair is expected to find its first resistance at 1.719, and a rise through could take it to the next resistance level of 1.7213.
Later today, the HBOS is scheduled to report the Halifax House Price Index data for the month of May.
The currency pair is trading above its 20 Hr and 50 Hr moving average.
