GBPUSD Movement
For the 24 hours to 23:00 GMT, GBP fell 0.23% against the USD and closed at 1.5663, after the UK economy shrank more-than-initially estimated during the first quarter of 2012.
In the UK, Gross Domestic Product (GDP) fell 0.3% (QoQ) in the first quarter of 2012, against the original estimation of 0.2% decline, confirming that the UK economy slipped into a recession. However, total business investment in the UK, spiked 14.2% (YoY) in the first quarter of 2012 compared to the expectation of 9.2% growth, and following a 1.6% rise in the previous quarter.
Additionally, mortgage approvals for house purchases rose to 32,438, following an upwardly revised 31,931 approvals registered in March, and surpassing expectations of a rise to 32,000 approvals.
In the Asian session, at GMT0300, the pair is trading at 1.565, with the GBP trading 0.09% lower from yesterday’s close.
The pair is expected to find support at 1.5617, and a fall through could take it to the next support level of 1.5584. The pair is expected to find its first resistance at 1.5704, and a rise through could take it to the next resistance level of 1.5759.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
