GBPUSD Movement
For the 24 hours to 23:00 GMT, GBP fell 0.58% against the USD and closed at 1.5319, after the UK government announced deep spending cuts and cautioned that the British economy was still weak. In a government spending review, the UK Chancellor, George Osborne, stated that the government would make £11.5 billion in cuts for the financial year 2015-16. Meanwhile, in its latest financial stability report, the Bank of England (BoE) cautioned that sharp increase in global interest rates would be risky for banks as the confidence in the nation’s financial system remains weak and has recommended a review of banks exposure to interest-rate risk.
In the Asian session, at GMT0300, the pair is trading at 1.5339, with the GBP trading 0.13% higher from yesterday’s close.
The pair is expected to find support at 1.5278, and a fall through could take it to the next support level of 1.5216. The pair is expected to find its first resistance at 1.5421, and a rise through could take it to the next resistance level of 1.5502.
On the economic landscape, markets await gross domestic product data in the UK, which is expected to remain stable in the Q1 2013.
The currency pair is showing convergence with its 20 Hr moving average and is trading below its 50 Hr moving average.
