Topic: COZfx: GBP trading tad lower ahead of the BoE’s policy meeting
COZforex: For the past trading session, the GBP rise 0.13% against the USD and closed at 1.7154, after Bank of England’s new policy committee member and head of banking and markets, Nemat Shafik, said that the slack in the UK economy has considerably reduced and hinted that the interest rate in the nation may be raised very soon. However, initially amid the day, the British Pound came under pressure after the release of soft economic data from the UK.
The Halifax house price index in the UK dropped 0.6% in June, compared to a revised 4.0% (M-o-M) rise recorded in the previous month. Markets were expecting house price index to fall 0.3% in June. In addition, the UK BRC shop price index registered its biggest annual decline since 2006 in June.
Overnight data released by Royal Institution of Chartered Surveyors indicated that house price balance in the UK rise to 53.0% in June, its slowest rise in 15 months, compared to a revised 56.0% recorded in the previous month. Markets were expecting house price balance to increase to 55.0% in June.
In technical analysis, COZforex senior currency strategist Ian • Quigley said, GBP/USD is predicted to find support at 1.7108, and a drop through could take it to the next support line of 1.7063. Meanwhile, the pair is predicted to find its first resistance at 1.7184, and a rise through could take it to the next resistance line of 1.7215.
Trading trends in the pair today are expected to be determined by the Bank of England’s interest rate decision scheduled later today.
(COZ forex UK)