GBPUSD Movement
For the 24 hours to 23:00 GMT, GBP rose 0.26% against the USD and closed at 1.6448. However the gains in the UK Pound were capped as the US Dollar advanced after the Fed Chief, Janet Yellen hinted that the central bank would continue tapering the size of its asset purchase programme in the future.
In the Asian session, at GMT0400, the pair is trading at 1.6449, with the GBP trading tad higher from yesterday’s close.
Earlier today, the Bank of England (BoE) Governor, Mark Carney warned that the UK economy continued to remain fragile, consequently of which it would not be able to withstand any hike in the nation’s key interest rate in the near future.
The pair is expected to find support at 1.6397, and a fall through could take it to the next support level of 1.6346. The pair is expected to find its first resistance at 1.6495, and a rise through could take it to the next resistance level of 1.6542.
Traders keenly await the BoE quarterly inflation report and the BoE Governor, Mark Carney’s speech, due later today, to gauge whether there would be any adjustments to the BoE’s forward guidance policy.
The currency pair is showing convergence with its 20 Hr moving average and is trading above its 50 Hr moving average.
