GBPUSD Movement
For the 24 hours to 23:00 GMT, GBP fell 0.66% against the USD and closed at 1.6030, as concerns over the handling of the Euro-zone’s sovereign debt crisis weighed on demand for riskier currencies.
Meanwhile, the UK Chancellor of the Exchequer, George Osborne stated that the Conservative Party led government would execute a £10 billion reduction in the benefits budget and further cut department spending. He further stated that the great bulk of savings must come from cutting government spending and not by increasing taxes.
In the Asian session, at GMT0300, the pair is trading at 1.6038, with the GBP trading marginally higher from yesterday’s close.
This morning, according to the Royal Institute of Chartered Surveyors (RICS) house prices in the UK improved to a seasonally adjusted balance of -15.0 in September, compared to a revised -18 in August. Meanwhile, on a seasonally adjusted basis, BRC retail sales rose 1.5% in September, compared to a 0.4% drop in the previous month.
The pair is expected to find support at 1.6001, and a fall through could take it to the next support level of 1.5963. The pair is expected to find its first resistance at 1.6096, and a rise through could take it to the next resistance level of 1.6154.
Trading trends in the pair today are expected to be determined by the release of industrial production, manufacturing production, total trade balance and the NIESR GDP estimate in the UK.
The currency pair is showing convergence with its 20 Hr moving average and is trading below its 50 Hr moving average.
