GBPUSD Movement
For the 24 hours to 23:00 GMT, the GBP rose 0.09% against the USD and closed at 1.4209, after the Bank of England (BoE) policymakers voted 9-0 to hold the interest rate at a record low 0.50% and maintained its asset purchase facility at £375.00 billion. The central bank warned on the risks from ‘Brexit’ particularly stating that the Pound would fall further after an “Out” decision. It also vowed to take “whatever action needed” following the outcome of the referendum. The BoE further pointed out that the referendum uncertainty is already hitting the housing market as Britons put spending decisions on hold.
In other economic news, UK retail sales advanced much-more-than-expected by 0.9% MoM in May, boosted by a big jump in clothing sales. Market expectations were for a rise of 0.3%, following a revised increase of 2.0% in the previous month.
In the Asian session, at GMT0300, the pair is trading at 1.4258, with the GBP trading 0.34% higher from yesterday’s close.
The pair is expected to find support at 1.4081, and a fall through could take it to the next support level of 1.3905. The pair is expected to find its first resistance at 1.4363, and a rise through could take it to the next resistance level of 1.4469.
Amid no economic data points in UK today, investors await next week’s EU referendum result, along with the nation’s public sector net borrowing as well as the Gfk consumer confidence index data.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
