For the 24 hours to 23:00 GMT, the GBP rose 0.36% against the USD and closed at 1.2675, after the Bank of England’s (BoE) Chief Economist, Andy Haldane, stated that he is likely to back an interest rate hike later this year, citing strong resilience of the economy and to prevent tightening too fast in the future.
Macroeconomic data showed that UK’s public sector net borrowing has posted a deficit of £6.0 billion in May, after recording a revised deficit of £8.7 billion in the prior month. Meanwhile, markets were expecting public sector net borrowing to report a deficit of £7.0 billion.
In the Asian session, at GMT0300, the pair is trading at 1.2665, with the GBP trading 0.08% lower against the USD from yesterday’s close.
The pair is expected to find support at 1.2599, and a fall through could take it to the next support level of 1.2534. The pair is expected to find its first resistance at 1.2720, and a rise through could take it to the next resistance level of 1.2776.
In absence of any crucial economic releases in the UK today, investor sentiment will be governed by global macroeconomic news.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
