For the 24 hours to 23:00 GMT, the GBP declined 0.08% against the USD and closed at 1.2774.
Yesterday, the Paris-based think tank, OECD stated that Britain’s economy would expand by 1.3% and 1.4% in 2019 and 2020 respectively. However, the country would experience a large economic loss in case of no-Brexit deal. Thus, the OECD suggested Britain to maintain “closest possible” relationship with EU to avoid a downfall.
Data indicated that, UK’s public sector net borrowing posted a more than expected deficit of £7.96 billion in October, following a revised deficit of £1.98 billion in the previous month. Market participants had anticipated public sector net borrowing to record a deficit of £5.35 billion.
In the Asian session, at GMT0400, the pair is trading at 1.2781, with the GBP trading 0.05% higher against the USD from yesterday’s close.
The pair is expected to find support at 1.2757, and a fall through could take it to the next support level of 1.2732. The pair is expected to find its first resistance at 1.2813, and a rise through could take it to the next resistance level of 1.2844.
In absence of key economic releases in the UK today, investor sentiment would be determined by global macroeconomic events.
The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.
