GBPUSD Movement
For the 24 hours to 23:00 GMT, GBP fell 0.05% against the USD and closed at 1.6218.
Yesterday, the Bank of England (BoE) Governor, Mervyn King, stated that it would be acceptable for the UK government to miss a key debt-cutting goal if the economy continued to grow slowly citing weak state of the economy justified revising the target.
Meanwhile, on the economic front, retail sales in the UK fell 0.2% (MoM) in August, from a rise of 0.3% in July. Market had expected retail sales to drop 0.4% in August. Additionally, the Confederation of British Industry (CBI) survey’s total order book balance rose to -8 in September, from -21 in August.
In the Asian session, at GMT0300, the pair is trading at 1.6229, with the GBP trading 0.07% higher from yesterday’s close.
The pair is expected to find support at 1.6185, and a fall through could take it to the next support level of 1.6142. The pair is expected to find its first resistance at 1.6251, and a rise through could take it to the next resistance level of 1.6274.
The pair is expected to take cues from UK public sector net borrowing data due out in the day ahead.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
