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COZfx: GBP/USD trading on a lower footing this morning


kiriss5678

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COZforex: For the past trading session, the GBP dropped 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 3 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 technical analysis, COZforex senior currency strategist Ian • Quigley said, GBP/USD is predicted to find support at 1.6541, and a drop through could take it to the next support line of 1.6506. Meanwhile, the pair is predicted to find its first resistance at 1.6646, and a rise through could take it to the next resistance line of 1.6716.

Trading trends in the Pound today would be determined mainly by retail sales data from the UK.

(COZ forex UK)

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