GBPUSD Movement
For the 24 hours to 23:00 GMT, GBP fell 0.29% against the USD and closed at 1.5994, as the Bank of England (BoE) Deputy Governor, Paul Tucker, in his speech, stated that the UK central bank was in “no rush” to withdraw stimulus. Separately, the BoE Monetary Policy Committee member, David Miles, indicated that the market’s view on unemployment is too optimistic, and it is wrong to think a tightening of policy is imminent. Additionally, the greenback received some support from investors’ preference for safe-haven assets amid concerns over US Senate budget talks.
In the UK, a report showed that BBA mortgage approvals in the nation rose to 38,200 in August, failing to meet market expectation for a rise to 38,600 and compared to a reading of 37,400 registered in the preceding month.
In the Asian session, at GMT0300, the pair is trading at 1.5985, with the GBP trading 0.06% lower from yesterday’s close.
The pair is expected to find support at 1.5946, and a fall through could take it to the next support level of 1.5906. The pair is expected to find its first resistance at 1.6034, and a rise through could take it to the next resistance level of 1.6082.
Traders are expected to keep a close watch on the outcome of the UK’s CBI distributive trades survey, for further direction in the movement of the pound.
The currency pair is showing convergence with its 20 Hr moving average and is trading below its 50 Hr moving average.
