GBPUSD Movement
For the 24 hours to 23:00 GMT, GBP fell 0.74% against the USD and closed at 1.5245, the Bank of England’s (BoE) policy makers continued to remain divided for further asset purchases as the latest minutes revealed that the BoE Governor, Mervyn King and two other policymakers voted to increase the quantitative easing, while other six members stated that further easing might exacerbate inflation expectations and prompt renewed weakness in Pound. However, the Monetary Policy Committee (MPC) unanimously decided to maintain the record low 0.50% interest rate. On the economic front, the employment data was not impressive as the ILO unemployment rate rose to 7.9% in the three months ended February, while the claimant count rate remained unchanged at 4.6% in March. However, number of jobless claims fell by 7,000 claims to a total of 1.53 million in March.
In the Asian session, at GMT0300, the pair is trading at 1.5256, with the GBP trading marginally higher from yesterday’s close.
The pair is expected to find support at 1.5194, and a fall through could take it to the next support level of 1.5132. The pair is expected to find its first resistance at 1.5340, and a rise through could take it to the next resistance level of 1.5424.
Trading trend in the pair is likely to be impacted by the release of UK’s March retail sales data.
The currency pair is showing convergence with its 20 Hr moving average and is trading below its 50 Hr moving average.
