In the 24 hours to 23:00 GMT, the GBP fell 6.06% against the USD and closed at 1.2239.
On the data front, UK consumer price inflation fell to 0.8% year-on-year in April, reaching its lowest level since 2016, compared to a level of 1.5% the previous month. In addition, the producer price index fell 0.7% year-on-year in April, more than market expectations to a fall of 0.4% and compared to a 0.3% advance in the previous month. In addition, the retail price index rose 1.5% year-on-year in April, less than the market forecast for an increase of 1.6% and compared with an advance of 2.6% in the previous month. Meanwhile, the DCLG house price index rose 2.1% year-on-year in March, compared with a revised increase of 2.0% in the previous month.
In the Asian session at GMT0300, the pair traded at 1.2201, with GBP trading 0.31% lower against the USD from yesterday’s close.
The couple is expected to find support at 1.2167, and a fall through could lead to the next support level at 1.2132. The pair is expected to find its first resistance of 1.2262, and an increase through it can lead to the next resistance level of 1.2322.
Going forward, traders would keep an eye on the UK’s Markit manufacturing and service PMIs for May, expected to be released in just a few hours.
The currency pair trades below its moving averages of 20 hr and 50 hr.