GBPUSD Movement
For the 24 hours to 23:00 GMT, GBP rose 0.36%, for the third day against the USD and closed at 1.6341, after the Bank of England (BoE) stated that its Funding for Lending Scheme (FLS) would cease to offer banks incentives for mortgage lending, in order to head off the risk of a housing bubble in Britain. The BoE Governor, Mark Carney stated that the bank do not see an immediate threat coming from the housing market. However, they are concerned about the prospective evolution of the housing market, and hence would scale back the Funding for Lending Scheme (FLS), which was launched last year to boost mortgage lending, amid concerns over a possible property bubble.
In the Asian session, at GMT0400, the pair is trading at 1.6365, with the GBP trading 0.15% higher from yesterday’s close. Earlier today, the GfK Group reported that its index on UK consumer confidence declined to a reading of -12 in November, defying market expectations for a rise to -10 from previous month’s reading of -11.
The pair is expected to find support at 1.6316, and a fall through could take it to the next support level of 1.6267. The pair is expected to find its first resistance at 1.6395, and a rise through could take it to the next resistance level of 1.6425.
Market participants await the release of UK’s nationwide housing prices data and BoE’s report on consumer credit.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
