GBPUSD Movement
For the 24 hours to 23:00 GMT, the GBP declined 0.44% against the USD and closed at 1.2471, after UK’s consumer prices grew at the fastest annual pace since June 2014 in January.
Data indicated that, Britain’s consumer price index (CPI) advanced 1.8% on an annual basis in January, on the back of weak Pound and higher oil prices, compared to a rise of 1.6% in the prior month. However, the reading fell short of market expectations for the CPI to gain 1.9%.
In the Asian session, at GMT0400, the pair is trading at 1.2468, with the GBP trading slightly lower against the USD from yesterday’s close.
The pair is expected to find support at 1.2423, and a fall through could take it to the next support level of 1.2377. The pair is expected to find its first resistance at 1.2531, and a rise through could take it to the next resistance level of 1.2593.
Ahead in the day, traders will focus on Britain’s ILO unemployment rate for the three months to December and average earnings data, to gauge strength in the nation’s labour market.
The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.
