For the 24 hours to 23:00 GMT, the GBP declined 0.05% against the USD and closed at 1.3038, after UK’s consumer price inflation rose below estimates.
Data showed that UK’s consumer price index (CPI) climbed 1.9% on an annual basis in March, undershooting market consensus for a gain of 2.0%. The CPI had registered a similar rise in the prior month. Moreover, Britain’s retail price index rose 2.4% on an annual basis in March, compared to an advance of 2.5% in the prior month. Market participants had anticipated the index to register a gain of 2.6%. Also, the nation’s house price index jumped 0.6% on a yearly basis in March, rising at its slowest pace in six-years and falling short of market consensus for a climb of 1.2%. In the preceding month, the index had registered a rise of 1.7%.
In the Asian session, at GMT0300, the pair is trading at 1.3039, with the GBP trading marginally higher against the USD from yesterday’s close.
The pair is expected to find support at 1.3023, and a fall through could take it to the next support level of 1.3007. The pair is expected to find its first resistance at 1.3061, and a rise through could take it to the next resistance level of 1.3083.
Trading trend in the Sterling today, is expected to be determined by UK’s retail sales for March, scheduled to release in a few hours.
The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.