For the 24 hours to 23:00 GMT, the GBP rose 0.51% against the USD and closed at 1.2347, as fears of recession eased following positive GDP data.
In economic news, UK’s gross domestic product (GDP) advanced 0.3% on a monthly basis in July, supported by significant growth in service sector and compared to a flat reading in the prior month. Further, the industrial production unexpectedly rose 0.1% on a monthly basis in July, defying market anticipations for a steady reading. In the previous month, industrial production had registered a fall of 0.1%. Additionally, the nation’s manufacturing production unexpectedly climbed 0.3% on a monthly basis in July. In the prior month, manufacturing production had dropped 0.2%. Moreover, Britain’s visible trade deficit expanded to £9.1 billion in July, compared to a revised deficit of £8.9 billion in the prior month.
In the Asian session, at GMT0300, the pair is trading at 1.2338, with the GBP trading 0.07% lower against the USD from yesterday’s close.
The pair is expected to find support at 1.2253, and a fall through could take it to the next support level of 1.2168. The pair is expected to find its first resistance at 1.2404, and a rise through could take it to the next resistance level of 1.2470.
Looking ahead, traders would keep an eye on UK’s average weekly earnings and the ILO unemployment rate, both for July, set to release in a few hours.
The currency pair is showing convergence with its 20 Hr moving average and trading above its 50 Hr moving average.
