GBPUSD Movement
On Friday, GBP rose 0.06% against the USD and closed at 1.6340, as risk-appetite among investors rose after a report from the Bank of England (BoE) showed that median expectations for inflation over the next 12 months rose to 3.6%, from 3.2% in August. Adding to the positive sentiment, the Halifax house price index in the UK rose 1.1% (MoM) in November, more than market expectations for a rise of 0.6% and compared to a 1.3% increase registered in the preceding month.
However, the Sterling’s gains against its US counterpart were capped after the latest batch upbeat employment data from the US bolstered the prospect for an earlier-than-expected Fed tapering.
In the Asian session, at GMT0400, the pair is trading at 1.6348, with the GBP trading marginally higher from Friday’s close.
The pair is expected to find support at 1.6296, and a fall through could take it to the next support level of 1.6244. The pair is expected to find its first resistance at 1.6397, and a rise through could take it to the next resistance level of 1.6446.
Amid lack of economic releases from the UK, traders are expected to keep a tab on global economic news for further guidance in the pair.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
