GBPUSD Movement
For the 24 hours to 23:00 GMT, GBP fell 0.44% against the USD and closed at 1.6361, after the Bank of England (BoE) Governor, Mark Carney, played down speculations of an interest-rate hike, by stating that a rate hike is self-defeating and that the market should not await any dramatic changes to the interest rate for an extended period of time.
On the economic front, the Conference Board (CB) reported that its UK leading economic index rose 0.5% in November, following a 0.4% increase seen in the preceding month.
In the Asian session, at GMT0400, the pair is trading at 1.6369, with the GBP trading marginally higher from yesterday’s close. Earlier today, the RICS housing price balance in the UK declined to 56% in the month of December, defying market expectations for a rise to 60% from the previous month’s level of 58%.
The pair is expected to find support at 1.6314, and a fall through could take it to the next support level of 1.6260. The pair is expected to find its first resistance at 1.6431, and a rise through could take it to the next resistance level of 1.6494.
With no major economic releases from UK during the later course of the day, market participants are expected to keep a close tab on global economic news for further guidance in the pair.
The currency pair is showing convergence with its 20 Hr moving average and is trading below its 50 Hr moving average.
