For the 24 hours to 23:00 GMT, the GBP declined 0.31% against the USD and closed at 1.2931, after macroeconomic data showed that UK’s economic growth in the first quarter was slower than previously estimated, raising concerns about the health of the UK economy ahead of general election on 8 June and the start of Brexit negotiations with the EU.
The nation’s gross domestic product (GDP) was revised down to 0.2% in the three months to March 2017, recording its weakest pace of growth since the first quarter of 2016, from the prior estimate of 0.3% growth, as rising inflation took its toll on consumer spending. The GDP had recorded a rise of 0.7% in the prior quarter.
Additionally, the number of mortgage approvals in the UK declined to 40.75K in April, compared to a revised level of 40.87K reported in the previous month. Markets were expecting mortgage approvals to ease to 40.80K.
In the Asian session, at GMT0300, the pair is trading at 1.2888, with the GBP trading 0.33% lower against the USD from yesterday’s close.
The pair is expected to find support at 1.2832, and a fall through could take it to the next support level of 1.2777. The pair is expected to find its first resistance at 1.2979, and a rise through could take it to the next resistance level of 1.3071.
Going ahead, investors will look forward to the Markit manufacturing and construction PMI data, GfK consumer confidence index and mortgage approvals for the UK, all due for release next week.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.