GBPUSD Movement
For the 24 hours to 23:00 GMT, GBP fell 0.24% against the USD and closed at 1.6098, after the minutes from the Bank of England’s (BoE) latest policy meeting revealed that the Monetary Policy Committee (MPC) voted unanimously to keep the interest rates at current levels, adding that the policymakers were in no hurry to raise its benchmark interest rates even if unemployment rate in the nation eventually fell to a 7% threshold. Additionally, the minutes highlighted the policy committee’s uncertainty “over the durability of the recovery of the Britain economy and the extent to which supply growth would keep pace with demand.”
Separately, the BoE MPC member, Martin Weale, opined that “there had been a noticeable but not significant rise in some indicators of inflation expectations since the announcement of forward guidance” and that it is “perfectly possible that we will have to get used to slower medium-term growth rates.”
In the Asian session, at GMT0400, the pair is trading at 1.6077, with the GBP trading 0.13% lower from yesterday’s close.
The pair is expected to find support at 1.6039, and a fall through could take it to the next support level of 1.6002. The pair is expected to find its first resistance at 1.6147, and a rise through could take it to the next resistance level of 1.6218.
Market participants are expected to keep a tab on UK’s public sector net borrowing data and CBI industrial trend survey report, scheduled to release later today.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
