GBPUSD Movement
For the 24 hours to 23:00 GMT, GBP fell 0.49% against the USD and closed at 1.5745, amid concerns that the UK economic growth would falter as European leaders struggle to meet a one-week deadline to find a solution to solve debt crisis.
Ernst & Young LLP’s ITEM Club downgraded its UK growth forecast and stated that the Bank of England should lower its key interest rate as its new stimulus earlier this month is unlikely to be enough to revive economic growth.
In the Asian session, at GMT0300, the pair is trading at 1.5785, with the GBP trading 0.25% higher from yesterday’s close.
The pair is expected to find support at 1.5728, and a fall through could take it to the next support level of 1.5671. The pair is expected to find its first resistance at 1.5845, and a rise through could take it to the next resistance level of 1.5905.
Trading trends in the pair today are expected to be determined by release of Consumer Price Index (CPI) and Retail Price Index in the UK.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
