GBPUSD Movement
For the 24 hours to 23:00 GMT, GBP rose 0.24% against the USD and closed at 1.6084, as the latest batch of upbeat industrial and manufacturing output data, strengthened the recovery prospect of the UK economy. Industrial production and manufacturing production in the UK advanced more-than-expected 2.2% (YoY) and 0.8% (YoY), respectively in September, following previous month’s drop of 1.5% and 0.2%.
Separately, the National Institute of Economic and Social Research (NIESR) estimated that GDP in the UK rose 0.7% in the three months through October, just below 0.8% reported in the three months to the end of September.
In the Asian session, at GMT0400, the pair is trading at 1.6082, with the GBP trading tad lower from yesterday’s close.
The pair is expected to find support at 1.6057, and a fall through could take it to the next support level of 1.6031. The pair is expected to find its first resistance at 1.6114, and a rise through could take it to the next resistance level of 1.6145.
Traders keenly await the Bank of England’s (BoE) interest rate and asset-purchase decision, slated for later today. Market expects the BoE to keep its interest rate and QE package unchanged at previous level of 0.5% and £375 billion, respectively.
The currency pair is showing convergence with its 20 Hr moving average and is trading above its 50 Hr moving average.
