GBPUSD Movement
For the 24 hours to 23:00 GMT, GBP fell 0.55% against the USD and closed at 1.6638, after the Bank of England (BoE) member, Charlie Bean stated that a further appreciation in the British Pound would interfere with the nation’s efforts to stimulate exports and restore the health of the economy. Additionally, he further stated that the interest rates in the nation would rise gradually to 2%-3% level in the medium term.
In the Asian session, at GMT0400, the pair is trading at 1.6642, with the GBP trading tad higher from yesterday’s close. Early morning, a report showed that the BRC retail sales monitor in the UK dropped 1.0% (YoY) in February, contradicting analysts’ expectations for a 1.6% rise and compared to a 3.9% increase witnessed in the preceding month.
The pair is expected to find support at 1.6595, and a fall through could take it to the next support level of 1.6549. The pair is expected to find its first resistance at 1.6714, and a rise through could take it to the next resistance level of 1.6787.
Market participants keenly await UK’s inflation report hearing, industrial production, manufacturing production and NIESR’s GDP estimate, slated for release later today. Meanwhile, BoE Governor, Mark Carney’s testimony to lawmakers, later today would put light on the recent controversies revolving around alleged foreign exchange rate fixing, wherein the Governor would defend the integrity of the central bank.
The currency pair is showing convergence with its 20 Hr moving average and is trading below its 50 Hr moving average.
