GBPUSD Movement
For the 24 hours to 23:00 GMT, GBP fell 0.13% against the USD and closed at 1.5596, after recent Fed minutes showed a broad consensus among policymakers for a gradual reduction of bond purchases later this year, if the economy continues to improve. The Pound also buckled against the USD after the Bank of England policy member, Martin Weale, earlier indicated that the central bank will not shy away from resorting to further asset purchases, if the economy shows signs of stalling.
In the Asian session, at GMT0300, the pair is trading at 1.5584, with the GBP trading tad lower from yesterday’s close, as investors await the release of UK’s GDP data.
The pair is expected to find support at 1.5556, and a fall through could take it to the next support level of 1.5527. The pair is expected to find its first resistance at 1.5619, and a rise through could take it to the next resistance level of 1.5653.
Investors are also expected to keep a close watch on British Bankers’ Association’s report on the mortgage approvals for the month of July and a government report of total business investment during second quarter, due later today.
The currency pair is showing convergence with its 20 Hr moving average and is trading below its 50 Hr moving average.
