GBPUSD Movement
For the 24 hours to 23:00 GMT, GBP ended flat against the USD and closed at 1.5903, as investors refrained from taking riskier bets ahead of Fed’s stimulus decision, due later today.
In the UK, an official report confirmed that the nation’s consumer price index rose 2.7% (YoY) in August, in-line with market expectation but below 2.8% rise seen in the previous month. Whereas, on a non-seasonally adjusted basis, the UK’s producer price index – output, stood at 1.6% (YoY) in August, failing to meet analysts’ expectation for a rise to 1.8% and compared to a 2.1% increase registered in the previous month. However, the nation’s retail price index edged up 3.3% (YoY) in August, more than analysts’ call for a 3.2% rise and compared to a 3.1% rise recorded in the earlier month.
In the Asian session, at GMT0300, the pair is trading at 1.5900, with the GBP trading tad lower from yesterday’s close.
The pair is expected to find support at 1.5877, and a fall through could take it to the next support level of 1.5855. The pair is expected to find its first resistance at 1.5930, and a rise through could take it to the next resistance level of 1.5961.
Trading trends in the Pound is expected to be determined by the minutes from Bank of England’s (BoE) latest policy meeting and a report on the voting pattern of BoE’s monetary policy committee, due to be released during the later course of the day.
The currency pair is showing convergence with its 20 Hr moving average and is trading just below its 50 Hr moving average.
