GBPUSD Movement
For the 24 hours to 23:00 GMT, GBP rose 0.62% against the USD and closed at 1.6231. The greenback buckle against the Pound, as lacklustre US employment data fuelled fresh speculation that the Fed might continue with its stimulus measures for a longer time to support recovery in the domestic jobs markets, proving dampener for the USD.
Meanwhile, the demand for the UK Pound gained momentum after the Bank of England (BoE) Deputy Governor, Charlie Bean stated that the nation’s recovery was gaining traction and that it is likely to remain fairly modest by historical standards. Positive sentiment for the GBP was also fuelled after a data revealed that UK’s public sector net borrowing declined to a level of £9.368 billion in September, more than analysts’ expectation for a fall to £10.400 billion from a revised reading of £10.808 billion recorded in the preceding month.
In the Asian session, at GMT0300, the pair is trading at 1.6247, with the GBP trading 0.10% higher from yesterday’s close.
The pair is expected to find support at 1.6156, and a fall through could take it to the next support level of 1.6064. The pair is expected to find its first resistance at 1.6299, and a rise through could take it to the next resistance level of 1.6350.
Market participants await the release of the minutes from BoE’s latest policy meeting and a report on the voting pattern of the central bank’s Monetary Policy Committee, for further direction in the Pound.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
