GBPUSD Movement
For the 24 hours to 23:00 GMT, GBP fell 0.22% against the USD and closed at 1.5512.
Yesterday, the Bank of England’s (BoE) monetary policy committee kept the benchmark rate unchanged at 0.5% and held the size of its quantitative easing program at £375 billion.
Meanwhile, on the data front, the UK Markit/CIPS construction purchasing managers’ index (PMI) advanced to 50.9 in July, from 48.2 in June.
In the Asian session, at GMT0300, the pair is trading at 1.5517, with the GBP trading marginally higher from yesterday’s close.
This morning, the National Institute for Economic and Social Research (NIESR) estimated that the UK economy would contract by 0.5% in 2012, followed by 1.3% growth in 2013, citing that the Euro-zone debt crisis and the government’s spending cuts would weigh heavily on the country’s prospects.
The pair is expected to find support at 1.5446, and a fall through could take it to the next support level of 1.5374. The pair is expected to find its first resistance at 1.5634, and a rise through could take it to the next resistance level of 1.5750.
Trading trends in the pair today are expected to be determined by the release of servicers PMI data in the UK
The currency pair is trading just below its 20 Hr moving average and well below its 50 Hr moving average.
