For the 24 hours to 23:00 GMT, the GBP rose 0.75% against the USD and closed at 1.2652, amid upbeat economic data.
Data indicated that UK’s consumer price index rose 2.0% on an annual basis in May, meeting market consensus and compared to a rise of 2.1% in the prior month. Moreover, the nation’s retail price index rose 3.0% on an annual basis in May, higher than market expectations for a gain of 2.9%. In the previous month, the index had registered a similar rise. Further, Britain’s house price index climbed 1.4% on an annual basis in April, compared to a revised rise of 1.6% in the previous month. Market participants had anticipated the index to record an increase of 1.3%. Meanwhile, the CBI total trends order dropped to a level of -15.0 in June, following a reading of -10.0 in the prior month.
In the Asian session, at GMT0300, the pair is trading at 1.2683, with the GBP trading 0.25% higher against the USD from yesterday’s close.
The pair is expected to find support at 1.2588, and a fall through could take it to the next support level of 1.2494. The pair is expected to find its first resistance at 1.2732, and a rise through could take it to the next resistance level of 1.2782.
Trading trend in the Sterling today, is expected to be determined by the Bank of England’s interest rate decision along with UK’s retail sales for May, set to release in a few hours.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
