GBPUSD Movement
On Friday, GBP fell 0.06% against the USD and closed at 1.6801.
On the economic front, total trade deficit of the UK widened to £2.5 billion in April from a revised deficit of £1.1 billion recorded in the previous month, as the nation posted its biggest goods trade deficit in five months. Separately, a BoE survey indicated that median of the year ahead public inflation expectations dropped to their lowest levels for more than four years in May.
In a noteworthy event, the IMF Managing Director, Christine Lagarde, expressed an optimistic view on the growth of the UK economy but at the same time cautioned that accelerating house prices and low productivity could put the nation’s economic growth in harm’s way.
In the Asian session, at GMT0300, the pair is trading at 1.6806, with the GBP trading marginally higher from Friday’s close.
The pair is expected to find support at 1.6775, and a fall through could take it to the next support level of 1.6745. The pair is expected to find its first resistance at 1.6842, and a rise through could take it to the next resistance level of 1.6879.
Amid a lack of economic releases in the UK economy, during the later course of the day, traders would eye global economic news for further cues in the British Pound.
The currency pair is showing convergence with its 20 Hr moving average and is trading just above its 50 Hr moving average.
