GBPUSD Movement
For the 24 hours to 23:00 GMT, GBP rose 0.28% against the USD and closed at 1.6237, as the Bank of England (BoE), Markets Director, Paul Fisher, stated that the UK housing market is clearly gathering momentum and that he does not see any evidence of bubble behaviour as yet. He further added that the central bank’s forward guidance “is working” in support of the real economy, and that the market expectations for the Bank of England (BoE) to increase its interest rates sooner than expected doesn’t suggest a failure of its programme.
On the economic front, an official report showed that the nation’s construction PMI declined to a reading of 58.9 in September from a level of 59.1 registered in the previous month and compared to market expectation for a rise to 59.2.
In the Asian session, at GMT0300, the pair is trading at 1.6239, with the GBP trading tad higher from yesterday’s close.
The pair is expected to find support at 1.6190, and a fall through could take it to the next support level of 1.6140. The pair is expected to find its first resistance at 1.6271, and a rise through could take it to the next resistance level of 1.6302.
Investors are expected to closely monitor the release of UK’s Markit service PMI data, which the traders expects to register a reading of 60.0 in September, following a level of 60.5 seen in the previous month.
The currency pair is showing convergence with its 20 Hr moving average and is trading just above its 50 Hr moving average.
