GBPUSD Movement
For the 24 hours to 23:00 GMT, the GBP rose marginally against the USD and closed at 1.6720, as a lacklustre US GDP data weighed on the greenback.
The British Pound benefited from a report that showed the Gfk consumer confidence index in the UK economy improved to its highest level since April 2005 in the month of May. However, the Lloyds business barometer in the UK plunged to a reading of 41.0 in May from a level of 66.0 reported in the previous month. Meanwhile, via a note published in the Western Mail newspaper, a BoE policymaker, Charlie Bean revealed that there were differences of opinion within BoE policymakers regarding UK’s interest rates hikes in small “baby steps” as a large hike in the same could increase the “likelihood of getting it wrong.”
In the Asian session, at GMT0300, the pair is trading at 1.6733, with the GBP trading 0.08% higher from yesterday’s close.
The pair is expected to find support at 1.6703, and a fall through could take it to the next support level of 1.6673. The pair is expected to find its first resistance at 1.6753, and a rise through could take it to the next resistance level of 1.6773.
Amid a lack of 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 trading just above its 20 Hr moving average and is showing convergence with its 50 Hr moving average.
