GBPUSD Movement
On Friday, the GBP traded 0.52% lower against the USD and closed at 1.5276.
On the macro front, consumer inflation expectations in the UK for the next 12 months advanced to 2.20% in May, up from previous month’s level of 1.90%.
In the Asian session, at GMT0300, the pair is trading at 1.5266, with the GBP trading 0.07% lower from Friday’s close.
Early this morning, the Confederation of British Industry (CBI) trimmed Britain’s growth forecast to 2.4% growth in 2015 and 2.5% next year, down from February’s projection of 2.7% and 2.6% respectively, citing the nation’s weaker than expected Q1 GDP data- the weakest since the end of 2012. The agency also mentioned that uncertainty over EU referendum could pose further risks to Britain’s growth prospects.
The pair is expected to find support at 1.5180, and a fall through could take it to the next support level of 1.5094. The pair is expected to find its first resistance at 1.5362, and a rise through could take it to the next resistance level of 1.5458.
Meanwhile, investors today would concentrate on Britain’s trade balance data scheduled in a few hours, for further cues.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
