GBPUSD Movement
For the 24 hours to 23:00 GMT, GBP fell 0.38% against the USD and closed at 1.6001, as global growth concerns coupled with ongoing uncertainty over the UK’s role in the European Union continued to weigh on demand for the Pound.
Sentiment weakened after the World Bank cut its forecast for global growth for 2013. The lender also indicated that the UK’s economy would grow by 1.1% this year, well below its June forecast for 1.6% growth, adding to fears of a recession in the UK.
Sentiment on the Pound was also hit as political pressure mounted on British Prime Minister, David Cameron, to renegotiate elements of the country’s EU membership, ahead of a speech on Friday in which he will outline plans to change Britain’s relationship with Europe.
In the Asian session, at GMT0400, the pair is trading at 1.5989, with the GBP trading marginally lower from yesterday’s close.
The pair is expected to find support at 1.5953, and a fall through could take it to the next support level of 1.5918. The pair is expected to find its first resistance at 1.6047, and a rise through could take it to the next resistance level of 1.6106.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
