For the 24 hours to 23:00 GMT, the GBP rose 0.56% against the USD and closed at 1.3010, following upbeat economic data in the UK.
Data showed that Britain’s net consumer credit advanced more-than-expected by £1.7 billion in May, notching its highest level in six months, thus suggesting that households remain confident enough to increase borrowing to help smooth consumption. In the previous month, net consumer credit climbed by £1.5 billion, while markets anticipated it to increase by £1.4 billion. Moreover, the number of mortgage approvals for house purchases in the UK unexpectedly rose to a level of 65.2K in May, confounding market consensus for a fall to a level of 64.0K. In the prior month, mortgage approvals had recorded a revised level of 65.1K.
In the Asian session, at GMT0300, the pair is trading at 1.3019, with the GBP trading 0.07% higher against the USD from yesterday’s close.
Overnight data revealed that the nation’s GfK consumer confidence index dropped more-than-expected to a level of -10.0 in June, as Britons remained concerned about spiking inflation and weakening wage growth. Markets anticipated the index to fall to a level of -7.0, after recording a level of -5.0 in the previous month. On the other hand, the nation’s business barometer advanced to a level of 30.0 in June, following a level of 27.0 in the previous month.
The pair is expected to find support at 1.2970, and a fall through could take it to the next support level of 1.2921. The pair is expected to find its first resistance at 1.3049, and a rise through could take it to the next resistance level of 1.3079.
Moving ahead, traders would focus on UK’s final 1Q GDP data, set to release in a few hours.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
