GBPUSD Movement
For the 24 hours to 23:00 GMT, GBP fell 0.08% against the USD and closed at 1.5516, after National Institute of Economic Research (NIESR) reported that the UK gross domestic product (GDP) fell 0.2% (QoQ) in June.
Adding to the negative tone, the Bank of England Governor, Mervyn King, said that the uncertainty over the future of Euro-zone debt crisis is damaging activity around the world. He added that there is “a great black cloud of uncertainty” hanging over global business.
On the positive side, UK manufacturing output rose unexpectedly by 1.2% (MoM) in May, making it biggest monthly gain since May 2011, while industrial output increased 1.0% (MoM) in May. Nation’s total trade deficit fell to £2.7 billion in May, compared to a deficit of £4.1 billion in April. Meanwhile, visible trade deficit fell to £8.4 billion in May, compared to a deficit of £9.7 billion in April.
In the Asian session, at GMT0300, the pair is trading at 1.5526, with the GBP trading 0.06% higher from yesterday’s close.
The pair is expected to find support at 1.5487, and a fall through could take it to the next support level of 1.5448. The pair is expected to find its first resistance at 1.5557, and a rise through could take it to the next resistance level of 1.5588.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
