GBPUSD Movement
For the 24 hours to 23:00 GMT, GBP fell 0.22% against the USD and closed at 1.6682, after data showed that the annual inflation rate in the nation fell below the BoE’s target level for the first time in over four years. Yesterday, consumer inflation in the UK rose 1.9% (YoY) in January, compared to a 2.0% rise registered in the previous month. However, the losses in the UK Pound were kept in check after the Bank of England (BoE) policymaker, Ian McCafferty, dismissed deflation concerns for the UK economy. Furthermore, he opined that growth in the UK economy could accelerate further, ahead of a much-awaited interest rate hike.
In the Asian session, at GMT0400, the pair is trading at 1.6691, with the GBP trading marginally higher from yesterday’s close.
The pair is expected to find support at 1.6650, and a fall through could take it to the next support level of 1.6608. The pair is expected to find its first resistance at 1.6738, and a rise through could take it to the next resistance level of 1.6784.
Market participants keenly await the minutes from the BoE latest policy meeting, UK claimant count and the ILO unemployment data, slated for release later today.
The currency pair is showing convergence with its 20 Hr moving average and is trading just below its 50 Hr moving average.
