GBPUSD Movement
For the 24 hours to 23:00 GMT, the GBP rose 0.85% against the USD and closed at 1.6932, as the BoE Governor, Mark Carney, publically hinted at the possibility for the central bank to raise its key interest rates sooner than market expectations while adding that the “eventual increases in Bank Rate would be gradual and limited.” Furthermore, he also cautioned that, despite the recent strong economic figures, the UK economy still remains unbalanced both internally and externally. Separately, UK Finance Minister, George Osborn, stated that he would entrust additional powers to the BoE for curbing mortgage lending and reducing housing market risks.
In the Asian session, at GMT0300, the pair is trading at 1.6945, with the GBP trading 0.08% higher from yesterday’s close.
In a noteworthy event, Fitch Ratings, citing UK’s favourable macroeconomic trends, affirmed the nation’s long-term foreign and local currency issuer default ratings at “AA+” with a “Stable” outlook.
The pair is expected to find support at 1.6838, and a fall through could take it to the next support level of 1.6732. The pair is expected to find its first resistance at 1.7005, and a rise through could take it to the next resistance level of 1.7066.
Market participants are expected to keep a tab on the release of UK’s CB leading economic index data, to get further guidance in the UK Pound.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
