GBPUSD Movement
For the 24 hours to 23:00 GMT, the GBP fell 0.19% against the USD and closed at 1.6867, as the latter benefited from a strong US manufacturing and housing data.
In the UK, the BoE Governor, Mark Carney, through a comment published in The Times newspaper, warned insurance companies against considering riskier and less traditional investments, adding that the UK central bank would hold them accountable if things went south.
On the economic front, UK’s first quarter GDP rose at an expected pace of 0.8% (QoQ) while public sector net borrowing in the nation rose to £9.6 billion in April, compared to an earlier month’s level of £6.1 billion. Separately, the CBI, in its industrial trend survey, reported that total order book balance registered a flat reading in May, compared to a -1 reading in April.
In the Asian session, at GMT0300, the pair is trading at 1.6870, with the GBP trading slightly higher from yesterday’s close.
The pair is expected to find support at 1.6841, and a fall through could take it to the next support level of 1.6812. The pair is expected to find its first resistance at 1.6909, and a rise through could take it to the next resistance level of 1.6948.
Amid lack of major economic releases from the UK economy later today, traders are expected to keep a tab on global economic news for further cues in the currency pair.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
