GBPUSD Movement
For the 24 hours to 23:00 GMT, the GBP rose 0.47% against the USD and closed at 1.4534.
In economic news, NIESR estimated that UK’s GDP advanced 0.4% in the 3-months period ended January 2016, down from a revised rise of 0.5% in the previous quarter, led mainly by weak industrial output. Additionally, the nation’s industrial production fell more-than-expected by 1.1% MoM in December, hitting its lowest level since September 2012. Markets expected it to fall by 0.1%, compared to a revised drop of 0.8% in the preceding month. Also, manufacturing production unexpectedly eased 0.2% MoM in December, falling for the third consecutive month, from a revised decline of 0.3% and compared to market expectations for a rise of 0.1%, thus raising concerns about the health of the UK economy.
In the Asian session, at GMT0400, the pair is trading at 1.4539, with the GBP trading marginally higher from yesterday’s close.
Early morning data showed that, UK’s RICS house price balance remained steady at a level of 49.0 in January, while markets expected it to register a reading of 52.0.
The pair is expected to find support at 1.4461, and a fall through could take it to the next support level of 1.4384. The pair is expected to find its first resistance at 1.4598, and a rise through could take it to the next resistance level of 1.4657.
Going ahead, investors will look forward to UK’s construction output data for December, scheduled to release tomorrow.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.