GBPUSD Movement
For the 24 hours to 23:00 GMT, GBP fell 0.48% against the USD and closed at 1.5916, after Bank of England (BoE) cut the UK growth forecast for 2012 and expected inflation to stay above target for a year.
The Bank of England, in its quarterly inflation report, has trimmed its forecast for nation’s economic growth to 0.8% in 2012. Additionally, the Bank discarded any hope that inflation, now 3.5%, would fall back to the official 2% target by the end of the year.
In economic news, on a seasonally adjusted basis, claimant count in the UK, declined by 13,700 to 1.59 million in April, against the market expectations of 5,000 rise. Additionally, the rate of unemployment fell to 8.2% in April, from a rate of 8.3% in March.
In the Asian session, at GMT0300, the pair is trading at 1.5923, with the GBP trading marginally higher from yesterday’s close.
The pair is expected to find support at 1.5879, and a fall through could take it to the next support level of 1.5835. The pair is expected to find its first resistance at 1.5977, and a rise through could take it to the next resistance level of 1.6032.
The currency pair is trading just below its 20 Hr moving average and well below its 50 Hr moving average.
