Pound Trading On A Lower Footing This Morning
GCI Financial | Aug 21, 2014 01:39AM ET
For the 24 hours to 23:00 GMT, the GBP fell 0.14% against the USD and closed at 1.6596. The greenback strengthened as the minutes of the latest Fed meeting was hawkish. However, the Pound gained earlier after the BoE minutes of the last policy meeting indicated that two policymakers from the rate-setting committee surprisingly voted in favour of a rate hike in August, marking the first split in more than three years. The majority of policymakers voted to hold the benchmark interest rate at 0.50% as they were of the opinion that an earlier rise in rate could leave the economy “vulnerable to shocks”.
In economic news, a survey by the CBI indicated that British factory orders grew faster than expected, with the measure rising to 11.0 in August, from a level of 2.0 in the previous month and beating market estimates for a reading of 4.0.
In the Asian session, at GMT0300, the pair is trading at 1.6577, with the GBP trading 0.11% lower from yesterday’s close.
The pair is expected to find support at 1.6541, and a fall through could take it to the next support level of 1.6506. The pair is expected to find its first resistance at 1.6646, and a rise through could take it to the next resistance level of 1.6716.
Trading trends in the Pound today would be determined mainly by retail sales data from the UK.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
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