For the 24 hours to 23:00 GMT, the GBP rose 0.82% against the USD and closed at 1.2737 on Friday.
Macroeconomic data revealed that UK’s services PMI expanded to a level of 51.2 in December, amid modest gains in activity and demand and surpassing market expectations for a rise to a level of 50.7. In the prior month, the PMI had registered a reading of 50.4. Moreover, the nation’s net consumer credit recorded an advance of £0.9 billion in November, undershooting market consensus for a rise of £1.0 billion. In the preceding month, net consumer credit had recorded a revised gain of £0.8 billion.
On the other hand, Britain’s seasonally adjusted Nationwide house price index surprisingly retreated 0.7% on a monthly basis in December, signalling its slowest pace in 6-years and defying market anticipations for a climb of 0.1%. The index had registered a revised rise of 0.4% in the prior month. Also, the nation’s mortgage approvals for house purchases fell to a 7-month low level of 63.7K in December, compared to a revised level of 66.7K in the previous month. Market participants had envisaged the mortgage approvals to drop to a level of 66.0K.
In the Asian session, at GMT0400, the pair is trading at 1.2749, with the GBP trading 0.09% higher against the USD from Friday’s close.
The pair is expected to find support at 1.2661, and a fall through could take it to the next support level of 1.2573. The pair is expected to find its first resistance at 1.2793, and a rise through could take it to the next resistance level of 1.2837.
In absence of key economic releases in UK today, investor sentiment would be determined by global macroeconomic events.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
