GBPUSD Movement
On Friday, GBP rose 0.20% against the USD and closed at 1.6213. However, the gains in the UK Pound were capped after the Bank of England’s (BoE) Chief Economist, Spencer Dale, warned that that the recovery in the Britain economy is not in its final stages and that the economy still has “have a number of years to go.” He further projected the interest rates in the nation to remain low for a “sustained period” of time. Nevertheless, he also said that the economy was moving in the right direction and did not foresee a housing market bubble.
In the Asian session, at GMT0400, the pair is trading at 1.6222, with the GBP trading 0.06% higher from Friday’s close.
The pair is expected to find support at 1.6189, and a fall through could take it to the next support level of 1.6157. The pair is expected to find its first resistance at 1.6248, and a rise through could take it to the next resistance level of 1.6275.
Traders are expected to keep a close watch on the release of UK’s nationwide housing prices, due later today, for further direction in the Pound.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
