GBPUSD Movement
Despite positive UK economic data GBP fell 0.53% against the USD for the 24 hours to 23:00 GMT and closed at 1.5632, as investors exercised caution ahead of the Federal Reserve’s policy statement.
In the UK, the consumer price index (CPI) climbed by 0.2% in May, against the expected 0.1% rise and from a similar rise reported in April. Annual CPI rose 2.7% in May. Moreover, the retail price index and the house price index both recorded a rise in May and April respectively. Additionally, UK’s PPI core output rose in May.
In the Asian session, at GMT0300, the pair is trading at 1.5636, with the GBP trading marginally higher from yesterday’s close.
The pair is expected to find support at 1.5563, and a fall through could take it to the next support level of 1.5490 The pair is expected to find its first resistance at 1.5710, and a rise through could take it to the next resistance level of 1.5784.
Trading trends in the pair today are expected to be determined by the release of the Bank of England (BoE) minutes.
The currency pair is showing convergence with its 20 Hr moving average and is trading below its 50 Hr moving average.
