For the 24 hours to 23:00 GMT, GBP fell marginally against the USD and closed at 1.6133. Yesterday, Bank of England (BoE) policymaker left the asset purchase target unchanged at £325 billion in line with market expectations and kept the interest rate unchanged at 0.50%, as widely expected.
GBP came under pressure after industrial production fell 0.30% (MoM), against the 0.4% rise in February. However, manufacturing production rose more-than-expected by 0.9% (MoM) in March, against the market expectation of 0.5% rise.
Additionally, National Institute of Economic Research (NIESR) in its monthly estimate stated that the UK Gross domestic product (GDP) grew by 0.1% in the three months ending in April, after falling into recession in the first-quarter of 2012.In the Asian session, at GMT0300, the pair is trading at 1.6130, with the GBP trading marginally lower from yesterday’s close, after data showed that consumer confidence fell in the UK.
Data released this morning showed that Nationwide consumer confidence in the UK declined to 44.0 in April, compared to the reading of 53.0 in March.
The pair is expected to find support at 1.6087, and a fall through could take it to the next support level of 1.6044. The pair is expected to find its first resistance at 1.6178, and a rise through could take it to the next resistance level of 1.6225.
Trading trends in the pair today are expected to be determined by the release of producer price index in the UK.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.