Coz Forex UK: GBP fell 0.66% against the USD and closed at 1.6030, as concerns over the handling of the Euro-zone’s sovereign debt crisis weighed on demand for riskier currencies. In the Asian session, the pair is trading at 1.6038, with the GBP trading marginally higher from Monday’s close.

At the same time, the UK Chancellor of the Exchequer, George Osborne said that the Conservative Party led government would execute a £10 billion reduction in the benefits budget and further cut department spending. He further said that the great bulk of savings must come from cutting government spending and not by increasing taxes.

According to the Royal Institute of Chartered Surveyors (RICS) house prices in the UK improved to a seasonally adjusted balance of -15.0 in September, compared to a revised -18 in August. Meanwhile, on a seasonally adjusted basis, BRC retail sales rose 1.5% in September, compared to a 0.4% drop in the previous month.

Technically, GBP/USD are predicted to find its first resistance at 1.6096, and a rose through could take it to the next resistance line of 1.6154. Meanwhile, the pair is predicted to find support at 1.6001, and a fell through could take it to the next support line of 1.5963.

The pair is showing convergence with its 20 Hr moving average and is trading below its 50 Hr moving average. (Cozfx)

GBPUSD, 091012.jpg