GBP/USD: UK's Hometrack Home Prices Drop In October

GBP/USD: UK's Hometrack Home Prices Drop In October

For the 24 hours to 23:00 GMT on Friday, GBP fell 0.08% against the USD and closed at 1.6105.

The Bank of England Deputy Governor, Charles Bean cautioned against over-optimism following third- quarter gross domestic product data and stated that UK's growth may be weak in the final three months of 2012.

In the Asian session, at GMT0400, the pair is trading at 1.6081, with the GBP trading 0.15% lower from Friday's close.

Today morning, UK's Hometrack home prices fell 0.1% (MoM) in October, in line with market expectations and the decline was unchanged from the rate in September. Additionally, the Lloyds Banking Group's business confidence indicator in the UK increased to a reading of 17.0 in October, compared to a reading of 10.0 in September.

The pair is expected to find support at 1.6057, and a fall through could take it to the next support level of 1.6034. The pair is expected to find its first resistance at 1.6123, and a rise through could take it to the next resistance level of 1.6165.

Trading trends in the pair today are expected to be determined by the release of Halifax house prices, M4 money supply, mortgage approvals and consumer credit data in the UK.