GBPUSD Movement
For the 24 hours to 23:00 GMT, GBP rose 0.28% against the USD and closed at 1.5968, as investors gauged that the Bank of England’s minutes were not as dovish as some had feared.
In its minutes for the meeting held on November 7 and 8, the Bank of England indicated that policymakers have decided to retain quantitative easing at £375 billion through a split vote, as David Miles sought an increase of £25 billion. Eight members of the Monetary Policy Committee agreed that maintaining the size of the asset purchase programme was appropriate. Additionally, the committee voted unanimously to keep its key lending rate at a record low 0.5%.
On the economic front, UK’s public sector net borrowing, excluding financial interventions, dropped to £8.6 billion in October, compared to a revised £12.0 billion recorded in the previous month. Market had expected public sector net borrowing excluding interventions to stand at £6.0 billion in October. Meanwhile, public sector net borrowing including the temporary effects of financial interventions fell to £6.5 billion in October, compared to a revised £9.9 billion recorded in September.
In the Asian session, at GMT0400, the pair is trading at 1.5960, with the GBP trading marginally lower from yesterday’s close.
The pair is expected to find support at 1.5905, and a fall through could take it to the next support level of 1.5851. The pair is expected to find its first resistance at 1.5992, and a rise through could take it to the next resistance level of 1.6025.
Trading trends in the pair today are expected to be determined by the release of CBI industrial trends survey orders in the UK.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
