GBPUSD Movement
For the 24 hours to 23:00 GMT on Friday, GBP rose 0.56% against the USD and closed at 1.5877.
In economic news, in the UK, Nationwide house prices declined 0.7% annually in August, compared to a 2.6% drop in July. Market had expected prices to fall 2.2% in August.
Meanwhile, a member of the Bank of England’s Monetary Policy Committee, Adam Posen, argued strongly in favor the European Central Bank acting to cap bond yields to help restore order in the region’s troubled government bond markets.
In the Asian session, at GMT0300, the pair is trading at 1.5865, with the GBP trading 0.08% lower from Friday’s close.
This morning, in the UK, Lloyd’s business barometer rose to a reading of 10 in August compared to -8 in July.
The pair is expected to find support at 1.5797, and a fall through could take it to the next support level of 1.5728. The pair is expected to find its first resistance at 1.5915, and a rise through could take it to the next resistance level of 1.5964.
Trading trends in the pair today are expected to be determined by the release of manufacturing purchasing manager index in the UK, which is expected to remain in the contraction territory.
The currency pair is trading just above its 20 Hr moving average and well above its 50 Hr moving average.
