GBPUSD Movement
For the 24 hours to 23:00 GMT, GBP fell 0.61% against the USD and closed at 1.5890, hurt by a lacklustre growth in the UK’s consumer price index for October. UK’s consumer inflation rate rose to 2.2% (YoY) in October, less than analysts’ expectations for a rise to 2.5% and compared to a level of 2.7% registered in the previous month. Similarly, on a non-seasonally adjusted basis, producer price index output in the UK advanced less-than-expected 0.8% (YoY) in October, following 1.2% rise witnessed in the preceding month.
In the Asian session, at GMT0400, the pair is trading at 1.5895, with the GBP trading slightly higher from yesterday’s close.
The pair is expected to find support at 1.5835, and a fall through could take it to the next support level of 1.5775. The pair is expected to find its first resistance at 1.5974, and a rise through could take it to the next resistance level of 1.6053.
Later today, traders will look forward to the Bank of England’s (BoE) inflation report, to get further cues on the UK economy. Also ahead in the day, unemployment data in the country would be another data-point which would guide trading in the pair.
The currency pair is showing convergence with its 20 Hr moving average and is trading below its 50 Hr moving average.
