GBPUSD Movement
For the 24 hours to 23:00 GMT, GBP fell 0.21% against the USD and closed at 1.5490, following comments by the German Chancellor, Angela Merkel that joint euro bonds would send a “wrong signal,” spurring demand for safe-haven assets.
GBP was further weighed down after Bank of England policy maker, David Miles stated that there is a risk a country may leave the 17-nation euro area and that the threat from the region’s crisis has increased uncertainty over the outlook for the UK economy.
Meanwhile in the UK economic news, the total business investment declined 1.4% in the third quarter of 2011, compared to 11.6% rise in the previous quarter. Additionally, the Gross Domestic Product (GDP) rose 0.5% in the third quarter of 2011, compared to 0.1% expansion in the previous month. The Index for Services rose 0.6% for three months ended September.
In the Asian session, at GMT0400, the pair is trading at 1.5459, with the GBP trading 0.20% lower from yesterday’s close.
The pair is expected to find support at 1.5422, and a fall through could take it to the next support level of 1.5384. The pair is expected to find its first resistance at 1.5531, and a rise through could take it to the next resistance level of 1.5603.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
