GBPUSD Movement
For the 24 hours to 23:00 GMT, GBP rose 0.36% against the USD and closed at 1.6232, after data showed that the UK economy contracted less-than-expected in the 2nd quarter of 2012.
In the UK, Gross Domestic Product (GDP) contracted 0.4% (QoQ) in Q2 FY2012, smaller than the 0.5% drop previously estimated, however the current account deficit widened to £20.8 billion in the Q2 FY2012, from a revised deficit of £15.4 billion in the previous quarter.
Meanwhile, the Bank of England policymaker, Paul Fisher stated that he expects a “very strong” gross domestic product number in the third quarter.
In the Asian session, at GMT0300, the pair is trading at 1.6254, with the GBP trading 0.14% higher from yesterday’s close after the GfK NOP consumer confidence index in the UK rose to – 28, a 15-month high, from -29 in August.
The pair is expected to find support at 1.6195, and a fall through could take it to the next support level of 1.6135. The pair is expected to find its first resistance at 1.6286, and a rise through could take it to the next resistance level of 1.6318.
In the day ahead, investors await the release of index of services data in the UK.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
