For the 24 hours to 23:00 GMT, the GBP declined 0.56% against the USD and closed at 1.2356 on Friday, after data indicated that government borrowing hit a record high level stoking concerns about economic recovery.
On the data front, UK’s public sector net borrowing deficit unexpectedly widened to £54.5 billion in May, recording its largest annual increase in debt as a percentage of GDP since records began in March 1993 and following a revised deficit of £47.8 billion in the prior month. Meanwhile, retail sales jumped 12.0% on a monthly basis in May, more than market expectations for a rise of 5.7% and compared to a revised fall of 18.0% in the earlier month.
In the Asian session, at GMT0300, the pair is trading at 1.2366, with the GBP trading 0.08% higher against the USD from Friday’s close.
The pair is expected to find support at 1.2316, and a fall through could take it to the next support level of 1.2266. The pair is expected to find its first resistance at 1.2436, and a rise through could take it to the next resistance level of 1.2506.
Moving ahead, traders would keep a watch on UK’s CBI industrial trends survey orders for June, slated 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.
