GBPUSD Movement
For the 24 hours to 23:00 GMT, GBP fell 0.26% against the USD and closed at 1.6596, after Ukraine remained firm on its view that the Crimea peninsula would continue to be part of its country, suggesting more friction with Russia. However, losses were pared after the Russian President Vladimir Putin clarified that Russia had no intention to escalate the Crimean tensions to whole of Ukraine.
Yesterday, the UK Chancellor of the Exchequer George Osborne announced the appointment of Ben Broadbent, an external member of the Monetary Policy Committee, as the next Deputy Governor for monetary policy, replacing Charlie Bean.
Meanwhile, in his speech yesterday, BoE Governor, Mark Carney, made a case for more power to the central bank in order to deal with future financial crises. Furthermore, he criticised the former Chancellor Gordon Brown, who focussed more on bank policy to be based on an inflation target and rubbished a consensus over the past two decades that central bankers’ primary goal should be price stability.
In the Asian session, at GMT0400, the pair is trading at 1.6595, with the GBP trading marginally lower from yesterday’s close.
The pair is expected to find support at 1.6543, and a fall through could take it to the next support level of 1.6492. The pair is expected to find its first resistance at 1.6648, and a rise through could take it to the next resistance level of 1.6702.
The currency pair is showing convergence with its 20 Hr moving average and is trading below its 50 Hr moving average.
