For the 24 hours to 23:00 GMT, GBP fell 0.06% against the USD and closed at 1.6187, after reports showed that Nationwide house prices in the UK fell unexpectedly in April. Additionally, services PMI in the UK fell more than market expectations.
On a seasonally adjusted monthly basis, the Nationwide house prices in the UK fell 0.2% in April, following a 1.0% decline in March. Market had expected 0.5% rise in April. Additionally, services PMI retreated to a reading of 53.3 in April compared to a reading of 55.3 recorded in March. Analysts had expected the index to decline by 0.7 points to 54.6 in April. Meanwhile, official reserves in the UK increased by $447.0 million in April, following a decline of $1132.0 million in March.
In the Asian session, at GMT0300, the pair is trading at 1.6190, with the GBP trading marginally higher from yesterday’s close.
The pair is expected to find support at 1.6161, and a fall through could take it to the next support level of 1.6133. The pair is expected to find its first resistance at 1.6217, and a rise through could take it to the next resistance level of 1.6245.
Trading trends in the pair today are expected to be determined by Halifax house prices data release in the UK.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.