GBPUSD Movement
For the 24 hours to 23:00 GMT, GBP fell 0.08% against the USD and closed at 1.5894, as risk appetite was affected after disappointing Spanish bond auction raised concern that the region is struggling to overcome its sovereign-debt crisis.
In the UK, Purchasing Managers’ Index (PMI) for the service sector advanced to a reading of 55.3 in March, following a reading of 53.8 in February. Additionally, the Lloyds Banking Group’s Halifax division reported that the House Price Index rose 2.2% (MoM) in March, compared to a 0.4% decline in February.
In the Asian session, at GMT0300, the pair is trading at 1.5905, with the GBP trading 0.07% higher from yesterday’s close.
The pair is expected to find support at 1.5855, and a fall through could take it to the next support level of 1.5806. The pair is expected to find its first resistance at 1.5932, and a rise through could take it to the next resistance level of 1.5959.
Investors are eying manufacturing production and industrial production data along with Bank of England (BoE) interest rate decision in the UK later today. The BoE is expected to hold its target for bond purchases at £325 billion.
The currency pair is trading between its 20 Hr and 50 Hr moving averages.
