GBPUSD Movement
For the 24 hours to 23:00 GMT, GBP marginally fell against the USD and closed at 1.6568.
Economic data released yesterday indicated that the UK economy expanded less-than-expected in the fourth quarter. The UK Office for National Statistics reported that the British gross domestic product (GDP) in the UK rose 0.7% in the Q4 2013, in line with the market expectations and compared to a 0.8% rise in the Q3 2013. On the contrary, the preliminary GDP climbed 2.8% in Q4 2013 on an annual basis, the strongest annual pace since 2007, compared to a rise of 1.9% recorded in Q3 2013. Additionally, the index of services in the UK rose 0.4% in November on a monthly basis, compared to an increase of 0.1% recorded in the previous month. Markets were expecting index of services to rise 0.3% in November.
In the Asian session, at GMT0400, the pair is trading at 1.6575, with the GBP trading slightly higher from yesterday’s close.
The pair is expected to find support at 1.6532, and a fall through could take it to the next support level of 1.6488. The pair is expected to find its first resistance at 1.6623, and a rise through could take it to the next resistance level of 1.6670.
Trading trends in the pair today are expected to be determined by the Bank of England (BoE) Governor, Mark Carney’s speech. Additionally, outcome of the Federal Reserve policy meeting would also be a key indicator.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
