GBPUSD Movement
For the 24 hours to 23:00 GMT, GBP rose 0.27% against the USD and closed at 1.5706, amid positive UK economic data and as the Bank of England left interest rates on hold at 0.50% and voted to maintain its asset purchase programme unchanged at £375 billion. However it also indicated that it remained ready to provide further stimulus if necessary.
On the economic front, industrial production in the UK rose 1.1% (MoM) in December, following a revised 0.2% rise in November. Meanwhile, manufacturing output advanced 1.6% (MoM) in December, compared to a 0.3% drop recorded in the previous month. Annually, manufacturing output retreated 1.5% in December, compared to a revised 2.0% decline recorded in the previous month. Also, the total trade deficit narrowed to £3.2 billion in December, compared to a revised deficit of £3.6 billion recorded in November. Meanwhile, the visible trade deficit decreased to £8.9 billion in December, from a deficit of £9.3 billion recorded in the previous month. Also, the NISER Gross Domestic Product (GDP) estimate remained unchanged in January, compared to a 0.3% drop recorded in the previous month.
In the Asian session, at GMT0400, the pair is trading at 1.5728, with the GBP trading 0.14% higher from yesterday’s close.
The pair is expected to find support at 1.5663, and a fall through could take it to the next support level of 1.5599. The pair is expected to find its first resistance at 1.5781, and a rise through could take it to the next resistance level of 1.5835.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
