GBPUSD Movement
For the 24 hours to 23:00 GMT, GBP fell 0.03% against the USD and closed at 1.5686, as weak construction activity in the UK raised speculation that Bank of England (BoE) would implement a fresh round of stimulus measures.
In the UK, construction purchasing manager index (PMI) fell more-than-expected to 48.2 in June. Additionally, the M4 money supply fell 0.1% (MoM) in May, compared to a 0.9% rise in April. Separately, mortgage approvals for house purchase fell to 51,098 in May.
In the Asian session, at GMT0300, the pair is trading at 1.5675, with the GBP trading 0.07% lower from yesterday’s close.
This morning, the British Retail Consortium (BRC) reported that the annual shop price inflation in the UK eased to 1.1% in June, the lowest rate since November 2009.
The pair is expected to find support at 1.5651, and a fall through could take it to the next support level of 1.5626. The pair is expected to find its first resistance at 1.5707, and a rise through could take it to the next resistance level of 1.5738.
Trading trends in the pair today are expected to be determined by the release of services purchasing manager index (PMI) and Bank of England housing equity withdrawal data.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
