GBPUSD Movement
For the 24 hours to 23:00 GMT, the GBP declined marginally against the USD and closed at 1.3224, after UK’s retail sales fell by 0.9% MoM in June, recording its sharpest decline in six months and higher than market expectations for a drop of 0.6%. In the previous month, retail sales recorded a rise of 0.9%. Also, the public sector net borrowing declined more-than-forecasted to a level of £7.30 billion in June, from a revised level of £9.40 billion in the prior month while markets anticipated it to fall to a level of £9.20 billion.
In the Asian session, at GMT0300, the pair is trading at 1.3228, with the GBP trading marginally higher against the USD from yesterday’s close.
The pair is expected to find support at 1.3167, and a fall through could take it to the next support level of 1.3105. The pair is expected to find its first resistance at 1.3279, and a rise through could take it to the next resistance level of 1.3329.
Going ahead, market participants will look forward to UK’s flash Markit manufacturing and services PMI data for July, scheduled to release in a few hours.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
