GBPUSD Movement
For the 24 hours to 23:00 GMT, the GBP slightly rose against the USD and closed at 1.2694.
On the macro front, UK’s BBA mortgage approvals eased to a level of 42.4K in May, more than market expectations for a drop to a level of 41.0K. In the prior month, BBA mortgage approvals had registered a revised level of 42.9K.
The Bank of England’s Governor, Mark Carney, stated that he would be in support of stimulus package for recovering the economy in case of no-deal Brexit in October. Moreover, the central bank would monitor the impacts on demand, supply and on the exchange rate prior to their response over no-deal Brexit.
In the Asian session, at GMT0300, the pair is trading at 1.2686, with the GBP trading 0.06% lower against the USD from yesterday’s close.
The pair is expected to find support at 1.2664, and a fall through could take it to the next support level of 1.2641. The pair is expected to find its first resistance at 1.2708, and a rise through could take it to the next resistance level of 1.2729.
Going forward, trades would closely monitor UK’s Nationwide house price index and Lloyds business barometer, both for June, set to release overnight.
The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.
