GBPUSD Movement
For the 24 hours to 23:00 GMT, the GBP rose 0.62% against the USD and closed at 1.4196, after UK’s ILO unemployment rate surprisingly fell to 5.0% during the three months to April 2016, touching its lowest level since October 2005. Investors had expected it to remain steady at 5.1%. Meanwhile, employment climbed by 55.0K during the period, compared to an advance of 44.0K in the January-March 2016 period. Further, average earnings excluding bonus rose 2.3% YoY, compared to a revised advance of 2.2% in the January-March 2016 period.
In the Asian session, at GMT0300, the pair is trading at 1.4180, with the GBP trading 0.11% lower against the USD from yesterday’s close.
The pair is expected to find support at 1.4127, and a fall through could take it to the next support level of 1.4075. The pair is expected to find its first resistance at 1.4225, and a rise through could take it to the next resistance level of 1.4271.
Going ahead, market participants look forward to the Bank of England’s (BoE) interest rate decision, scheduled to be announced later today.
The currency pair is showing convergence with its 20 Hr moving average and is trading above its 50 Hr moving average.
