GBPUSD Movement
For the 24 hours to 23:00 GMT, GBP rose 1.31% against the USD and closed at 1.5600, as investor sentiment was lifted after the Bank of England announced no changes to its monetary policy.
Yesterday, the Bank of England’s (BoE) Monetary Policy Committee voted to keep its key interest rate unchanged at a record low of 0.5% in line with the market expectations. The BoE also left the size of its asset purchase programme unchanged at £375 billion as widely expected.
Adding to the positive tone, UK halifax house price index rose 0.4% (MoM) in May, more than the expected 0.2% rise. Separately, the Lloyds employment confidence edged up to a reading of -37.0 in May.
In the Asian session, at GMT0300, the pair is trading at 1.5595, with the GBP trading marginally lower from yesterday’s close.
The pair is expected to find support at 1.5427, and a fall through could take it to the next support level of 1.5259. The pair is expected to find its first resistance at 1.5724, and a rise through could take it to the next resistance level of 1.5853.
Trading trends in the pair today are expected to be determined by the release of consumer inflation expectations and goods trade balance data scheduled for release today in the UK.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
