For the 24 hours to 23:00 GMT, the GBP rose 0.7% against the USD and closed at 1.2580, after the UK’s number of mortgage approvals for house purchases rose to a level of 67.9K in December, notching its highest level in nine-months, against market consensus for a rise to a level of 69.0K and following a reading of 67.5K in the previous month. Meanwhile, the nation’s net consumer credit rose less-than-expected by £1.0 billion in December, growing at its slowest pace in five-months, thus signalling that Britons may have grown more cautious on spending amid rising inflation. In the prior month, net consumer credit had registered an increase of £1.9 billion, while market expected for an advance of £1.7 billion.
In the Asian session, at GMT0400, the pair is trading at 1.2571, with the GBP trading 0.07% lower against the USD from yesterday’s close.
Overnight data showed that the nation’s BRC shop price index dropped 1.7% YoY in January, following a revised decline of 1.4% in the prior month.
The pair is expected to find support at 1.2455, and a fall through could take it to the next support level of 1.2340. The pair is expected to find its first resistance at 1.2641, and a rise through could take it to the next resistance level of 1.2712.
Going ahead, UK’s Markit manufacturing PMI and nationwide house prices, both for January, scheduled to release in a few hours, will pique a lot of market attention.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.