GBPUSD Movement
For the 24 hours to 23:00 GMT, the GBP declined 0.59% against the USD and closed at 1.4167, after the BoE Governor, Mark Carney, signaled that a boost to UK’s interest rates is still some way off. He further stated that the inflation is expected to rise more gradually and the path towards monetary policy normalization appears too far because of the oil price collapse and volatility in China.
In other economic news, UK’s consumer price index advanced to an 11 month high, after it rose by 0.2% YoY in December, at par with market expectation and following a gain of 0.1% in the preceding month.
In the Asian session, at GMT0400, the pair is trading at 1.4152, with the GBP trading 0.11% lower from yesterday’s close.
The pair is expected to find support at 1.4074, and a fall through could take it to the next support level of 1.3996. The pair is expected to find its first resistance at 1.4285, and a rise through could take it to the next resistance level of 1.4418.
Moving ahead, investors will keep a close watch on UK’s ILO unemployment rate and employment change data, slated to release in a few hours.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
