GBPUSD Movement
For the 24 hours to 23:00 GMT, GBP rose 0.31% against the USD and closed at 1.5667.
Yesterday, the Bank of England (BoE), in its quarterly inflation report, scaled back its growth forecast for 2012 to 0%, saying that the economy would not grow overall in 2012. The central bank predicted an annual gross-domestic-product growth of about 2.0% in two years, compared with a projection in May of 2.5%. The BoE also forecast consumer-price growth at about 1.6%, below its 2.0% goal.
Following the BoE report, the central bank Governor, Mervyn King, stated there is no urgent need for fresh stimulus, but he signalled more money creation through the Bank’s quantitative easing could be done if needed.
In the Asian session, at GMT0300, the pair is trading at 1.5677, with the GBP trading 0.06% higher from yesterday’s close.
The pair is expected to find support at 1.5605, and a fall through could take it to the next support level of 1.5532. The pair is expected to find its first resistance at 1.5718, and a rise through could take it to the next resistance level of 1.5758.
In a day ahead, investors await trade balance in the UK, which is expected to show widened trade deficit for June.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
