GBPUSD Movement
For the 24 hours to 23:00 GMT, GBP gained 0.40% against the USD and closed at 1.5697, as investors cheered UK Chancellor of the Exchequer, George Osborne’s comments on the recovery of the Britain economy. He indicated that the UK economy is “turning a corner”, citing tentative signs of a balanced, broad based and sustainable recovery. However, he stressed that it was still the “early stages” and “plenty of risks” remained.
However, gains were limited after Paul Fisher, the director for markets at the Bank of England (BoE), and member of the Monetary Policy Committee (MPC), indicated that the central bank may postpone its monetary easing policy known as quantitative easing (QE), while it gauges the impact of the rate guidance policy tool.
Meanwhile, a report showed that the UK RICS housing price balance rose 40% in August, at par with market expectation and following a 37% rise seen in the previous month.
In the Asian session, at GMT0300, the pair is trading at 1.5702, with the GBP trading marginally higher from yesterday’s close.
The pair is expected to find support at 1.5649, and a fall through could take it to the next support level of 1.5595. The pair is expected to find its first resistance at 1.5745, and a rise through could take it to the next resistance level of 1.5787.
Investors are expected to keep a close watch on the outcome of Bank of England’s (BoE) credit condition survey for the third quarter, slated later during the day.
The currency pair is showing convergence with its 20 Hr moving average and is trading above its 50 Hr moving average.
