GBPUSD Movement
For the 24 hours to 23:00 GMT, the GBP rose 0.60% against the USD and closed at 1.5668, after stronger than expected economic data in the UK.
Data showed that manufacturing production in the UK climbed 0.40% MoM in March, more than market expectations for an advance of 0.30%. It had advanced by a revised 0.50% in the previous month. Additionally, the nation’s industrial production advanced 0.5% on a monthly basis, notching its biggest rise in 6-months in March, thus reducing fears that Britain’s strong economic growth was starting to slow.
Separately, leading think tanker, the NIESR estimated that the UK economy expanded by 0.4% in the three months to April, up from 0.3% estimated in the November-January 2015 period.
In the Asian session, at GMT0300, the pair is trading at 1.5679, with the GBP trading 0.07% higher from yesterday’s close.
The pair is expected to find support at 1.5586, and a fall through could take it to the next support level of 1.5494. The pair is expected to find its first resistance at 1.5743, and a rise through could take it to the next resistance level of 1.5806.
Going forward, investors look forward to the release of the BoE’s second quarterly inflation report of the year accompanied by the comments of the BoE Chief, Mark Carney along with Britain’s ILO unemployment rate data, scheduled in a few hours, to get better insights in the nation’s economy.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
