GBPUSD Movement
For the 24 hours to 23:00 GMT, GBP rose 0.16% against the USD and closed at 1.6041. The greenback came under pressure after two senior Federal Reserve officials yesterday expressed disappointment with the pace of the US recovery and defended the central bank’s decision to keep its stimulus program unchanged last week, with the New York Fed President, William Dudley saying that the economy is too weak for the central bank to pull back its bond-buying program. In a separate speech, Atlanta Fed President, Dennis Lockhart stated that the US economy may have lost dynamism.
Meanwhile, in the UK, the Bank of England (BoE) MPC, Ben Broadbent, indicated that strong acceleration in growth of the economy might settle down soon. He further indicated that the outlook for the nation’s growth and productivity are particularly uncertain despite a recent pick-up in UK’s economic recovery.
In the Asian session, at GMT0300, the pair is trading at 1.6030, with the GBP trading 0.07% lower from yesterday’s close.
The pair is expected to find support at 1.6005, and a fall through could take it to the next support level of 1.5981. The pair is expected to find its first resistance at 1.6064, and a rise through could take it to the next resistance level of 1.6099.
Investors await the release of UK’s BBA mortgage approval data and MPC member, Charlie Bean’s speech, later during the day, for further cues.
The currency pair is trading just below its 20 Hr moving average and is showing convergence with its 50 Hr moving average.
