GBPUSD Movement
For the 24 hours to 23:00 GMT, the GBP declined 0.51% against the USD and closed at 1.2395.
On the economic front, UK’s Halifax house price index rose by 1.4% MoM in October, compared to a revised advance of 0.3% in the prior month and beating investor consensus for a rise of 0.2%.
In the Asian session, at GMT0400, the pair is trading at 1.2390, with the GBP trading marginally lower against the USD from yesterday’s close.
Overnight data revealed that UK’s BRC retail sales across all sectors advanced by 1.7% YoY in October, growing at the fastest rate since January 2016, indicating that consumer spending remained unfazed by the prospect of Brexit. Retail sales had recorded a rise of 0.4% in the previous month while markets expected for a rise of 0.6%.
The pair is expected to find support at 1.2357, and a fall through could take it to the next support level of 1.2324. The pair is expected to find its first resistance at 1.2443, and a rise through could take it to the next resistance level of 1.2496.
Moving ahead, market participants would concentrate on UK’s industrial and manufacturing production, both for September, scheduled to be released in a few hours. Moreover, NIESR GDP estimate for the three months to October, due to release later in the day, would pique significant amount of market attention.
The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.
