GBPUSD Movement
For the 24 hours to 23:00 GMT, the GBP declined 0.09% against the USD and closed at 1.2483 on Friday.
Data showed that UK’s industrial production climbed 1.1% MoM in December, surpassing market consensus for a rise of 0.2% and following a revised gain of 2.0% in the prior month. Moreover, the nation’s manufacturing production topped market expectations, after it rose 2.1% in December, following a revised rise of 1.4% in the previous month, while investors had envisaged for an increase of 0.5%. Further, the nation’s total trade deficit fell more-than-anticipated to a level of £3.3 billion in December, following a revised deficit of £3.6 billion in the prior month.
In other economic news, UK’s leading think tanker, NIESR estimated that UK economy grew 0.7% in the three months to January 2017, driven by strong consumer spending and improvement in production industries. In the October-December 2016 period, NIESR estimated that Britain’s GDP had recorded a revised rise of 0.6%. Also, the nation’s construction output increased 1.8% MoM in December, higher than market consensus for a rise of 1.0% and compared to a revised gain of 0.4% in the previous month.
In the Asian session, at GMT0400, the pair is trading at 1.2491, with the GBP trading 0.06% higher against the USD from Friday’s close.
The pair is expected to find support at 1.2445, and a fall through could take it to the next support level of 1.2398. The pair is expected to find its first resistance at 1.2529, and a rise through could take it to the next resistance level of 1.2566.
Amid a lack of crucial economic releases in UK today, investor sentiment would be governed by global macroeconomic factors.
The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.
