GBPUSD Movement
For the 24 hours to 23:00 GMT, the GBP fell 0.24% against the USD and closed at 1.5011, after UK’s manufacturing production fell more-than-expected on a monthly basis in October.
Data showed that manufacturing production in Britain declined 0.4% MoM in October, higher than market expectations for a drop of 0.2%, and after rising by a revised 0.9% in the previous month. On the other hand, the nation’s industrial production advanced 0.1% MoM in October, in line with market expectations. In the prior month, it had registered a revised flat reading.
In other economic news, UK’s NIESR estimated gross domestic product (GDP) rose 0.6% during the September-November 2015 period, compared to a revised rise of 0.5% during the August-October 2015 period, thus paving way for the BoE to raise interest rates early next year.
In the Asian session, at GMT0400, the pair is trading at 1.5009, with the GBP trading marginally lower from yesterday’s close.
The pair is expected to find support at 1.4956, and a fall through could take it to the next support level of 1.4903. The pair is expected to find its first resistance at 1.5063, and a rise through could take it to the next resistance level of 1.5116.
Moving ahead, market participants will look forward to the BoE’s interest rate decision, scheduled to be announced tomorrow.
The currency pair is showing convergence with its 20 Hr moving average and is trading below its 50 Hr moving average.
