GBPUSD Movement
For the 24 hours to 23:00 GMT, GBP fell marginally against the USD and closed at 1.5663, as the Lloyds Banking Group’s Halifax division indicated that house prices in the UK decreased 0.2% (MoM) in January, in line with market expectations and compared to a revised 1.0% rise in December.
In the Asian session, at GMT0400, the pair is trading at 1.5662, with the GBP trading marginally lower from yesterday’s close.
The pair is expected to find support at 1.5635, and a fall through could take it to the next support level of 1.5609. The pair is expected to find its first resistance at 1.5684, and a rise through could take it to the next resistance level of 1.5707.
In the UK, the goods trade balance, industrial production, NIESR GDP Estimate and manufacturing production data are eyed by investors. However, BoE interest rate decision is keenly awaited by investors’ who expect the central bank to leave both interest rates at 0.50% this month and asset purchases at £375 billion. Investors also await the Bank of England’s governor-in-waiting, Mark Carney to address policymakers at a UK Parliamentary Committee ahead in the day, expecting that he would reiterate his dovish stance.
The currency pair is showing convergence with its 20 Hr moving average and is trading just below its 50 Hr moving average.
