GBPUSD Movement
For the 24 hours to 23:00 GMT, GBP fell marginally against the USD and closed at 1.6093, as the UK Chancellor, George Osborne revised down his prospects for economic growth.
In his autumn statement to the House of Commons, Chancellor George Osborne, unveiled a cut in the government’s economic growth forecasts and said the budget deficit will take longer to tame than he originally planned. He indicated that the UK economy would shrink 0.1% this year instead of the 0.8% growth predicted in March, and expand 1.2% next year instead of 2.0%. He extended his fiscal consolidation by one year to the 2017-18 fiscal year and stated that he will miss his target to start cutting debt as a percentage of gross domestic product in 2015 by a year.
In economic news, services purchasing managers’ index in the UK dropped to a reading of 50.2 in November, compared to a reading of 50.6 in October. Market had expected a reading of 51.0.
In the Asian session, at GMT0400, the pair is trading at 1.6094, with the GBP trading marginally higher from yesterday’s close.
The pair is expected to find support at 1.6078, and a fall through could take it to the next support level of 1.6063. The pair is expected to find its first resistance at 1.6114, and a rise through could take it to the next resistance level of 1.6135.
Among the economic releases scheduled for release today, the BoE interest rate decision and the BoE asset purchase facility data are most likely to affect the trading trends in the pair.
The currency pair is trading just below its 20 Hr and 50 Hr moving averages.
