GBPUSD Movement
For the 24 hours to 23:00 GMT, GBP fell 0.20% against the USD and closed at 1.5590, after the Bank of England (BoE) refrained from changing its monetary policy, broadly in line with market expectations. The BoE kept its interest rate unchanged at 0.5% and maintained its asset purchase facility at £375 billion.
Moreover, investors went long on the USD positions on the back of better-than-expected US labor and service-sector reports that cemented expectations for the Federal Reserve to announce plans to taper stimulus tools later this month.
In the Asian session, at GMT0300, the pair is trading at 1.5612, with the GBP trading 0.14% higher from yesterday’s close.
The pair is expected to find support at 1.5566, and a fall through could take it to the next support level of 1.5521. The pair is expected to find its first resistance at 1.5663, and a rise through could take it to the next resistance level of 1.5715.
Trading trends in the pair today are expected to be determined by the BoE’s data on consumer inflation expectation and unemployment data from the US, scheduled to release later today.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
