GBPUSD Movement
For the 24 hours to 23:00 GMT, GBP rose 0.24% against the USD and closed at 1.6044.
According to the Office for National Statistics the British economy got a mild boost from the money spent by overseas visitors to the country during the Olympic/Paralympic games, possibly helping it avoid a recession. It reported that the average amount of money spent by Olympics-visitors was £1,290 per person, almost twice as much as the average £650 spent by other visitors.
Earlier, the Bank of England (BoE) Governor, Mervyn King, once again stoked hopes of a fresh round of stimulus by indicating that central banks should be flexible with inflation targets, signalling that the BoE might adopt fresh easing measures despite the underlying threat of inflation staying above the central bank’s target rate for a prolonged period. However, MPC member, Martin Weale, stated that another round of QE may not be “compatible” with the BoE’s inflation target.
In the Asian session, at GMT0300, the pair is trading at 1.6029, with the GBP trading 0.10% lower from yesterday’s close.
The pair is expected to find support at 1.5999, and a fall through could take it to the next support level of 1.5970. The pair is expected to find its first resistance at 1.6057, and a rise through could take it to the next resistance level of 1.6085.
The currency pair is trading between its 20 Hr and 50 Hr moving averages.
