On Friday, the GBP rose 0.53% against the USD and closed at 1.6408 as investors sold the greenback after the US non-farm payrolls data failed to meet market expectations for January.
In other economic news, the UK industrial production rose less-than-expected 0.4% (MoM) in December, compared to a 0.1% drop witnessed in the preceding month. Similarly, the manufacturing production in the UK also failed to meet market expectations by registering just a 0.3% (MoM) rise in December, compared to market expectations for a 0.6% rise. Another report revealed that the nation’s total trade deficit narrowed more-than-expected to £1.0 billion in December, from a deficit of £3.6 billion registered in the preceding month. Separately, the National Institute of Economic and Social Research (NIESR), in its monthly estimate report, indicated that the UK GDP rose 0.8% in the three months to January, compared to a 0.7% increase reported in the in the three months ending December.
In the Asian session, at GMT0400, the pair is trading at 1.6410, with the GBP trading tad higher from Friday’s close.
The pair is expected to find support at 1.6335, and a fall through could take it to the next support level of 1.6259. The pair is expected to find its first resistance at 1.6452, and a rise through could take it to the next resistance level of 1.6493.
Traders are expected to keep a tab on the UK’s Lloyds employment confidence data, slated for release later today.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.