GBPUSD Movement
For the 24 hours to 23:00 GMT, the GBP slightly rose against the USD and closed at 1.2854.
Data showed that UK’s consumer price inflation growth slowed to a 3-year low level of 1.5% on an annual basis in October, amid decline in gas prices and compared to market expectations for a rise of 1.6%. In the previous month, the CPI had recorded an increase of 1.7%. Moreover, the nation’s house price index climbed 1.3% on an annual basis in September, less than market anticipation for an advance of 1.5%. The index had registered a similar rise in the previous month. Also, the nation’s retail price index dropped 0.2% on a monthly basis in October, compared to a similar decline in the prior month.
In the Asian session, at GMT0400, the pair is trading at 1.2841, with the GBP trading 0.10% lower against the USD from yesterday’s close.
Overnight data showed that Britain’s RICS house price balance fell to a level of -5.0 in October, more than market expectations for a drop to a level of -4.0. In the previous month, house price balance had recorded a revised level of -3.0%.
The pair is expected to find support at 1.2822, and a fall through could take it to the next support level of 1.2804. The pair is expected to find its first resistance at 1.2859, and a rise through could take it to the next resistance level of 1.2878.
Going ahead, traders would keep an eye on UK’s retail sales for October, slated to release in a few hours.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
