GBPUSD Movement
For the 24 hours to 23:00 GMT, the GBP declined 0.24% against the USD and closed at 1.2719, after UK’s BBA mortgage approvals fell to a level of 40.35K in May, hitting its lowest level since September 2016 and compared to a revised level of 40.69K in the previous month. Meanwhile, investors had envisaged for a drop to a level of 40.25K.
However, losses in the Pound were trimmed after the British Prime Minister, Theresa May’s Conservatives struck a deal with the Democratic Unionist Party to support a minority government.
In the Asian session, at GMT0300, the pair is trading at 1.2719, with the GBP trading flat against the USD from yesterday’s close.
The pair is expected to find support at 1.2697, and a fall through could take it to the next support level of 1.2674. The pair is expected to find its first resistance at 1.2751, and a rise through could take it to the next resistance level of 1.2782.
Ahead in the day, traders would closely monitor a speech by the Bank of England’s (BoE) Governor, Mark Carney, and the BoE’s financial stability report.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
