The British pound fell during the US session against the US dollar following developments and economic data that were followed yesterday by the British Royal Economy and the US economy, which included statements by British Prime Minister Teresa Mai about the British exit from the European Union and on the eve of disclosure of minutes of the meeting of the Committee Which took place on the seventh and eighth of this month.
We have followed the RBA to reveal net lending to individuals, which has risen to £ 5.0 billion from £ 4.9 billion in September, above expectations of £ 4.5 billion, in conjunction with a reading of the Mortgage Approvals Index Up from 67,000 in September to 66,000 in September.
We also followed the release of the Money Supply Index (M4), which showed a 0.7% gain versus a 0.3% drop in September, beating expectations for a 0.3% rise. Otherwise, we followed British Prime Minister Teresa Mae that the Bank of England Which included an analysis of the British exit agreement from the European Union, explained that the current agreement is the best choice.
If the British parliament voted against the agreement, its government would begin to take practical steps on Britain's exit from the EU without an agreement, the EU said, adding that the EU had clearly stated that it was the only agreement that could be reached, MPs do not want Britain to break away from the union, and although it is worried about it, the UK will leave the union in March.
On the other hand, we followed the US economy to reveal personal income and expenditure data, which showed that personal spending growth accelerated to 0.6% from 0.2% in September, beating expectations for a 0.4% growth. Personal income reading showed accelerated growth to 0.5% versus 0.2% in September, also surpassing forecasts for 0.4% growth.
In the same context, we also followed the largest economy in the world reading the personal consumption expenditure index, which showed a slowdown of growth to 0.1% compared to the previous September and expectations of 0.2%, and the annual reading of the same index slowed growth to 1.8% compared to reading Annualized for the month of September and expectations at 1.9%.
This came in conjunction with the reading of the index of requests for aid for the week ending on 24 of this month, which showed a rise of 10 thousand applications to 234 thousand applications in the previous weekly reading, contrary to expectations at 221 thousand requests, as indicated by the reading of the index of continuing claims for the week of 17 Of the month, up by 50 thousand to 1,710 thousand applications against 1,660 thousand applications, worse than the expectations of 1,663 thousand applications.
To the release of housing data, which showed a decline in new home sales 2.6% against 0.7% in September, contrary to expectations of a rise of 0.8%, while the annual reading of the same index showed a widening decline to 4.6% compared to 3.3% in the annual reading Prior to September, which is also worse than the forecast for a contraction of 2.8%.
Technical analysis:
GBP / USD is trading around the 1.2800 barrier, and the pair remains above the pivotal support at 1.2725, keeping the bullish scenario intact for the coming period, supported by Stochastic positive, with our main target at 1.2963.
A break of 1.2725 will press the price to test the most important support for short- and medium-term trading at 1.2636.
The trading range for today is expected among 1.2700 support and 1.2900 resistance.
Support and resistance:
Support: 1.2773-1.2725-1.2687;
Resistance: 1.2800-1.2843-1.2894.
The general trend for today is bullish.