GBPUSD Movement
For the 24 hours to 23:00 GMT, the GBP marginally declined against the USD and closed at 1.2060, as Britain’s consumer price inflation advanced beyond banks 2% target.
On the macro front, UK’s consumer price index (CPI) rose 2.1% on an annual basis in July, following an advance of 2.0% in the previous month. Markets participants had anticipated the CPI to record a gain of 1.9%. Further, the nation’s retail price index advanced 2.8% on a yearly basis in July, in line with market expectations. In the prior month, the retail price index had registered a rise of 2.9%. Meanwhile, the house price index climbed 0.9% on an annual basis in June, undershooting market expectations for a rise of 1.0%. In the prior month, the index had registered a revised similar rise.
In the Asian session, at GMT0300, the pair is trading at 1.2055, with the GBP trading slightly lower against the USD from yesterday’s close.
The pair is expected to find support at 1.2036, and a fall through could take it to the next support level of 1.2017. The pair is expected to find its first resistance at 1.2087, and a rise through could take it to the next resistance level of 1.2120.
Looking ahead, traders would keep an eye on UK’s retail sales for July, slated to release in a few hours.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
