GBPUSD Movement
For the 24 hours to 23:00 GMT, GBP advanced 0.60% against the USD and closed at 1.5825, as upbeat domestic jobs data bolstered the growth outlook of the UK economy.
An official report showed that jobless claims in the UK declined by 32,600 in August, more than market expectation for a fall of a 22,000 and compared to decline of 36,300 recorded in the previous month. Separately, the ILO unemployment rate stood at 7.7% during the three months ended July, defying market expectation for the unemployment rate to remain constant at 7.8%, recorded in the previous month.
Meanwhile, the Monetary Policy Committee Member, David Miles, in his speech, defended the central bank’s guidance on interest rates and welcomed signs of stronger consumer and business confidence, and faster economic growth in the UK. However, he also mentioned that the economic recovery was only just starting and would take a long time to make a big dent in unemployment.
In the Asian session, at GMT0300, the pair is trading at 1.5830, with the GBP trading tad higher from yesterday’s close.
The pair is expected to find support at 1.5754, and a fall through could take it to the next support level of 1.5679. The pair is expected to find its first resistance at 1.5869, and a rise through could take it to the next resistance level of 1.5909.
Investors await UK’s inflation report hearings, expected to be released by the Treasury Committee later today.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
