GBPUSD Movement
For the 24 hours to 23:00 GMT, the GBP declined 1.04% against the USD and closed at 1.2426, after the Bank of England (BoE) increased its bond-buying programme by £100 billion to bolster the coronavirus-hit economy.
The BoE, in its latest policy meeting, kept its interest rate unchanged at 0.1%, as widely expected. Additionally, the central bank increased its quantitative easing programme by £100 billion to £745 billion, in an effort to support the economy. However, the bank slowed the pace of its bond purchases. Further, the BoE warned that the outlook for jobs was “tilted to the downside”.
In the Asian session, at GMT0300, the pair is trading at 1.2427, with the GBP trading slightly higher against the USD from yesterday’s close.
The pair is expected to find support at 1.2366, and a fall through could take it to the next support level of 1.2305. The pair is expected to find its first resistance at 1.2524, and a rise through could take it to the next resistance level of 1.2621.
Ahead in the day, investors would keep a close watch on UK’s retail sales data and public sector net borrowing, both for May.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
