GBPUSD Movement
For the 24 hours to 23:00 GMT, GBP edged up slightly against the USD and closed at 1.5583, taking its cues from Friday’s report that showed that the UK’s GDP rose 0.7% (QoQ) during the second quarter, surpassing analysts’ expectation for a 0.6% rise and compared to a 0.3% decline registered in the earlier quarter. Another report confirmed that total business investment in the UK rose 0.9% (QoQ) in the second quarter, more than markets’ expectation for a 0.6% increase and following a 1.9% decline seen in the prior quarter. However, the BBA mortgage approval unexpectedly declined to a level of 37,200 in July from a reading of 37,300 approvals registered in the previous month.
In the Asian session, at GMT0300, the pair is trading at 1.5570, with the GBP trading slightly lower from yesterday’s close.
The pair is expected to find support at 1.5547, and a fall through could take it to the next support level of 1.5523. The pair is expected to find its first resistance at 1.5604, and a rise through could take it to the next resistance level of 1.5637.
Amid lack of economic releases in the UK, the Cable is expected to take cues from speech by the Bank of England Governor, Mark Carney later in the week, as speculation rose that the new Governor would defend low rates as he responds to skepticism on “forward guidance” policy.
The currency pair is trading just below its 20 Hr and 50 Hr moving averages.
