For the 24 hours to 23:00 GMT, the GBP declined 5.23% against the USD and closed at 1.2347 on Friday.
The Bank of England (BoE), in its latest meeting minutes, revealed that it has considered the option to cut interest rates further and elevate asset purchases to help lessen the economic shock of the coronavirus outbreak. Moreover, officials stated that risk appetite in global financial markets has deteriorated substantially, reflecting an escalation of concerns over the impact of Covid-19.
In the Asian session, at GMT0400, the pair is trading at 1.2343, with the GBP trading slightly lower against the USD from Friday’s close.
Overnight data indicated that UK’s Rightmove house price index rose 1.0% on a monthly basis in March, compared to an advance of 0.8% in the previous month.
The pair is expected to find support at 1.2197, and a fall through could take it to the next support level of 1.2052. The pair is expected to find its first resistance at 1.2556, and a rise through could take it to the next resistance level of 1.2770.
Amid lack of macroeconomic releases in the UK today, investor sentiment would be determined by global macroeconomic factors.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
