GBPUSD Movement
For the 24 hours to 23:00 GMT, GBP rose 1.45% against the USD and closed at 1.6133. The greenback lost ground against the Pound after the Fed policymakers, in its two-day policy meeting, defied market expectations and decided to continue with its $85 billion monthly asset-purchase programme.
Positive sentiment for the Pound was also fuelled following the release of minutes from the Bank of England’s (BoE) latest policy meeting. The central bank’s Monetary Policy Committee expected the UK economy to grow 0.7% in the third-quarter, up from 0.5% forecast in last month’s inflation report. The minutes also highlighted policymakers’ unanimous decision to vote against adding more quantitative easing to the economy.
In the Asian session, at GMT0300, the pair is trading at 1.6128, with the GBP trading marginally lower from yesterday’s close.
The pair is expected to find support at 1.5961, and a fall through could take it to the next support level of 1.5793. The pair is expected to find its first resistance at 1.6231, and a rise through could take it to the next resistance level of 1.6333.
Traders await the release of UK’s retail sales data, due later today, which the market expects to show an improvement, on a yearly basis, in the month of August.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
