GBPUSD Movement
For the 24 hours to 23:00 GMT, the GBP rose 0.25% against the USD and closed at 1.7028, amid speculations that the newly introduced BoE mortgage limits would not hamper UK’s economic growth. Yesterday, the BoE, in its semi-annual Financial Stability Report, noting a booming housing market in the nation, tightened its mortgage-lending rules in order to control increasing levels of debt and rapidly rising house prices in the Britain economy. Separately, the BoE Governor, Mark Carney stated that the central bank’s new measures to control mortgage lending were “less likely to have implications for the path of monetary policy, which currently anticipates limited and gradual rate rises over the forecast horizon.”
In economic data, the Gfk Group reported that its index measuring UK consumer confidence edged up to a reading of 1.0 in June, entering the positive territory for the first time since March 2005.
In the Asian session, at GMT0300, the pair is trading at 1.7038, with the GBP trading 0.06% higher from yesterday’s close.
The pair is expected to find support at 1.6992, and a fall through could take it to the next support level of 1.6947. The pair is expected to find its first resistance at 1.7062, and a rise through could take it to the next resistance level of 1.7087.
During the later course of the day, market participants would keenly await the release of the UK GDP data, which is widely expected to show that economic growth in the UK economy accelerated in the first-quarter of 2014.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
