GBPUSD Movement
For the 24 hours to 23:00 GMT, GBP dropped marginally against the USD and closed at 1.5449.
In the UK, annual consumer prices rose 2.8% in July, in line with market expectations. The DCLG house price index rose 3.1% (YoY) in June, from a 2.9% rise in the previous month. The retail price index (RPI) remained flat in July, compared to a 0.1% drop recorded in June. Meanwhile, the producer price index (PPI) input rose 5.0% (YoY) in July and the producer price index (PPI) output rose 2.1% (YoY) in July.
In the Asian session, at GMT0300, the pair is trading at 1.5447, with the GBP trading modestly lower from yesterday’s close, ahead of the Bank of England (BoE) policy minutes, which would outline the voting pattern behind the decision to maintain interest rates at 0.5% at its latest meeting. The minutes would also reveal the debate around the “forward guidance” which accompanied Governor Mark Carney’s Inflation report last week. Also on traders radar would be UK’s unemployment rate for three months ended June and claimant count change for July.
The pair is expected to find support at 1.5412, and a fall through could take it to the next support level of 1.5376. The pair is expected to find its first resistance at 1.5498, and a rise through could take it to the next resistance level of 1.5548.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
