For the 24 hours to 23:00 GMT, the GBP rose 0.93% against the USD and closed at 1.2938, following hawkish comments from the Bank of England (BoE) Governor, Mark Carney, that indicated support for a rate hike if UK’s economy stays firm.
The BoE Governor stated that higher interest rates will be “necessary” if wages pick up, and business investment strengthens.
On the data front, Britain’s seasonally adjusted house prices rebounded more-than-expected by 1.1% on a monthly basis in June, compared to a drop of 0.2% in the prior month. Meanwhile, market participants anticipated for a gain of 0.1%.
In the Asian session, at GMT0300, the pair is trading at 1.2958, with the GBP trading 0.15% higher against the USD from yesterday’s close.
The pair is expected to find support at 1.2843, and a fall through could take it to the next support level of 1.2728. The pair is expected to find its first resistance at 1.3024, and a rise through could take it to the next resistance level of 1.3090.
Moving ahead, investors will await UK’s net consumer credit and mortgage approvals data, both for May, slated to release in a few hours.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.