GBPUSD Movement
For the 24 hours to 23:00 GMT, GBP fell 0.1% against the USD and closed at 1.6662. However, the losses in the British Pound were kept in check after the Bank of England (BoE) policymaker, Martin Weale hinted towards the possibility for an interest rate hike in the spring of 2015.
Separately, the UK Chancellor, George Osborne opined that growth in the UK economy has been faster than any other European economies. At the same time, he warned that recovery in Britain was not yet secure as the economy was very much reliant on consumer spending money.
In a noteworthy development, the yields of the UK 10-year bond auction fell to 2.73% from an earlier yield of 2.87%, reflecting an improved confidence in the UK economy.
Meanwhile, data from the UK showed that, on a monthly basis, the CBI industrial trends survey – orders rose to a reading of 3.0 in February, from a figure of -2.0 registered in February. Analysts had expected the CBI industrial trend survey to rise to a reading of 5.0 in February.
In the Asian session, at GMT0400, the pair is trading at 1.6648, with the GBP trading 0.08% lower from yesterday’s close.
The pair is expected to find support at 1.6615, and a fall through could take it to the next support level of 1.6582. The pair is expected to find its first resistance at 1.6691, and a rise through could take it to the next resistance level of 1.6734.
Market participants are expected to keep a tab on the UK’s retail sales data, slated for release later today.
The currency pair is showing convergence with its 20 Hr moving average and is trading below its 50 Hr moving average.
