GBPUSD Movement
For the 24 hours to 23:00 GMT, GBP traded flat against the USD and closed at 1.6506.
The Bank of England monetary policy committee member, Andrew Sentance, criticized the monetary policy committee over its failure to tackle inflation, thus stating that the bank’s reputation could be damaged by its refusal to raise interest rates.
In the UK, the confederation of British industry (CBI) reported that 36% of manufacturers responding to its quarterly industrial trends survey reported an increase in output in the three months to March 2011 against 15% saying it had fallen, making a rounded balance of +20%. Additionally, the monthly data from the CBI survey showed that the order book levels fell to -11% in April, compared to +5% in the previous month.
The pair opened the Asian session at 1.6506, and is trading at 1.6485 at 3.00GMT. The pair is trading 0.13% lower from the New York session close.
The pair has its first short term resistance at 1.6537, followed by the next resistance at 1.6588. The first support is at 1.6430, with the subsequent support at 1.6374.
Trading trends in the pair today are expected to be determined by release of gross domestic product and nationwide housing prices in the UK.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
