GBPUSD Movement
For the 24 hours to 23:00 GMT, GBP fell 1.00% against the USD and closed at 1.5474, as investor sentiment dented after the Bank of England Governor, Mervyn King in his final speech opined that the central bank needs to introduce additional stimulus measures, as Britain’s economic recovery path is doubtful and a lot efforts are to be put in order to ensure that country’s banks no longer pose a threat to taxpayers.
Meanwhile, the latest minutes of the Bank of England’s June meeting revealed that three policymakers voted in favor of additional easing, unchanged from the previous month. It also indicated that all the members voted unanimously to keep interest rates unchanged at record low of 0.5%.
In the Asian session, at GMT0300, the pair is trading at 1.5437, with the GBP trading 0.24% lower from yesterday’s close.
The pair is expected to find support at 1.5353, and a fall through could take it to the next support level of 1.5270. The pair is expected to find its first resistance at 1.5599, and a rise through could take it to the next resistance level of 1.5762.
Later today, investors anticipate a monthly rise in the UK retail sales data scheduled for release later today.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
