GBPUSD Movement
For the 24 hours to 23:00 GMT, GBP fell 0.36% against the USD and closed at 1.5769, after the UK annual inflation slowed more-than-expected in April and reached the lowest since February 2010, raising the possibility of a new round of quantitative easing.
Separately, the International Monetary Fund (IMF) has opined that UK should resume fiscal easing measures by preparing a plan B of temporary tax cuts and increased infrastructure spending if Euro-zone crisis escalates. It further added the Euro-zone crisis was the single biggest threat to recovery of the nation.
In the UK, Consumer Price Index (CPI) fell 3.0% (YoY) in April, compared with 3.5% in March, its lowest level since February 2010. Additionally, retail price index fell 3.5% (YoY) in April, compared to the 3.6% in March.
Separately, the public sector net borrowing posted a surplus of £18.8 billion in April, compared to a deficit of £14.6 billion in March.
In the Asian session, at GMT0300, the pair is trading at 1.5760, with the GBP trading 0.06% lower from yesterday’s close.
The pair is expected to find support at 1.5718, and a fall through could take it to the next support level of 1.5676. The pair is expected to find its first resistance at 1.5825, and a rise through could take it to the next resistance level of 1.5890.
Trading trends in the pair today are expected to be determined by the release of Bank of England Minutes, mortgage applications, CBI industrial trends survey orders in the UK.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
