GBPUSD Movement
For the 24 hours to 23:00 GMT, GBP rose 0.47% against the USD and closed at 1.6070, after data showed that the UK trade deficit narrowed in July.
In the UK, visible trade deficit narrowed to £7.1 billion in July, compared to a revised £10.1 billion deficit in June. Moreover, the total trade balance, including goods and services, showed a deficit of £1.5 billion in July, compared to a £4.3 billion deficit in June.
Yesterday, the Bank of England’s monetary policy committee member, David Miles, stated that the bank might persist with its quantitative easing (QE) programme, but it should not be lured into making “helicopter drops” of money to the population at large.
In the Asian session, at GMT0300, the pair is trading at 1.6080, with the GBP trading 0.06% higher from yesterday’s close.
The pair is expected to find support at 1.6025, and a fall through could take it to the next support level of 1.5971. The pair is expected to find its first resistance at 1.6109, and a rise through could take it to the next resistance level of 1.6139.
In the day ahead, the UK’s ILO unemployment rate is expected to remain unchanged at 8.0% in the three months to July.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
