GBPUSD Movement
On Friday, GBP fell 0.27% against the USD and closed at 1.6294, after the Bank of England (BoE)’s chief economist, Spencer Dale, indicated that the central bank would not raise interest rates until Britain has enjoyed a “prolonged period of strong growth” resulting in higher real incomes and lower unemployment. He further warned that there are still plenty of risks to the recovery in the nation, particularly in the housing market, amid rising concerns that the government’s mortgage subsidies could be inflating a fresh property bubble.
On the economic front, the construction output in the UK rose 2.2% (MoM) in October, the highest level since December 2011, compared to a 0.5% decline registered in the previous month.
In the Asian session, at GMT0400, the pair is trading at 1.6303, with the GBP trading 0.06% higher from Friday’s close.
This morning, the Rightmove indicated that the average asking price for a house in the UK on a monthly basis, dropped 1.9% in December, following a fall of 2.4% recorded in the preceding month.
The pair is expected to find support at 1.6259, and a fall through could take it to the next support level of 1.6215. The pair is expected to find its first resistance at 1.6350, and a rise through could take it to the next resistance level of 1.6397.
A flurry of key economic releases from the UK during the week, mainly the consumer inflation data, the unemployment data, retail sales number and GFK consumer confidence level along with the Bank of England minutes would play a key role in the movement of the British Pound.
The currency pair is trading between its 20 Hr and 50 Hr moving averages.
