GBPUSD Movement
For the 24 hours to 23:00 GMT, GBP rose 1.00% against the USD and closed at 1.5497.
All the action in Pound yesterday was provided by new Bank of England (BoE) Governor, Mark Carney, as he unveiled the central bank’s quarterly Inflation Report. He indicated that the bank rate would stay at its record-low level of 0.5% and the current level of asset purchases would remain in place until at least the unemployment rate falls below 7.0%. The British Pound initially tumbled after the BoE provided explicit guidance on future monetary policy but then recovered.
However, the Central Bank revised up its estimate for GDP growth and now expects the economy to expand by 1.4% in 2013 and 2.5% in 2014, up from earlier estimates of 1.2% and 1.7% respectively.
In the Asian session, at GMT0300, the pair is trading at 1.5496, with the GBP trading flat from yesterday’s close.
The pair is expected to find support at 1.5290, and a fall through could take it to the next support level of 1.5084. The pair is expected to find its first resistance at 1.5617, and a rise through could take it to the next resistance level of 1.5738.
With no domestic releases in store today, the Pound is likely to be influenced by economic releases from Europe and US ahead in the day.
The currency pair is trading above its 20Hr and 50 Hr moving averages.
