British Pound Trading Higher Ahead Of The BoE’s Monetary Policy Decision

Fundamental analysis of Forex market

For the 24 hours to 23:00 GMT, the GBP declined 0.52% against the USD and closed at 1.3199, after British Prime Minister Theresa May confirmed that she was seeking a three-month delay the Brexit deadline.

In economic news, UK’s consumer price index (CPI) advanced 1.9% on a yearly basis in February, more than market consensus for a rise of 1.8%. In the previous month, the CPI had recorded a gain of 1.8%. Meanwhile, Britain’s retail price index growth slowed to a 6-year low level of 2.5% on an annual basis in February, at par market expectations. In the prior month, the index had registered a similar rise. Also, the nation’s house price index climbed 1.7% on an annual basis in February, less than market anticipation for a rise of 2.4%. The index had registered a revised advance of 2.2% in the prior month.

In the Asian session, at GMT0400, the pair is trading at 1.3209, with the GBP trading 0.08% higher against the USD from yesterday’s close.

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The pair is expected to find support at 1.3150, and a fall through could take it to the next support level of 1.3092. The pair is expected to find its first resistance at 1.3264, and a rise through could take it to the next resistance level of 1.3320.

Going ahead, investors would await the Bank of England’s interest rate decision followed by UK’s public sector net borrowing and retail sales data, both for February, set to release in a few hours.

The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.

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