In the 24 hours to 23:00 GMT, the GBP fell 3.67% against the USD and closed at 1.2550.
On the data front, the UK’s Nationwide house prices fell 1.7% on a monthly basis in May, registering the largest fall since 2009 and more than the market forecast for a 1.0% decline. In the previous month, house prices had registered a revised 0.9% rise. In addition, consumer credit fell by £ 7.4 billion in April, more than market expectations to fall to a level of £ 4.5 billion and compared to a revised decline of £ 3.8 billion in the previous month. In addition, mortgage approvals dropped to 15.8K in April, more than market expectations dropped to a level of 23.8K and compared to a revised reading of 56.1K in the previous month. In addition, BRC’s retail price index fell 2.4% year-on-year in April, compared with a 1.7% drop in the previous month.
In the Asian session at GMT0300, the pair traded at 1.2576, with the GBP trading at 0.21% against the USD from yesterday’s close.
The couple is expected to find support at 1.25, and a fall through could lead it to the next support level of 1.2423. The pair is expected to find its first resistance of 1.2632, and an increase through it can lead to the next resistance level of 1.2687.
In the future, traders would keep an eye on the UK’s Markit services PMI for May, expected to be released in a few hours.
The currency pair trades above its moving averages of 20 hr and 50 hr.