It is widely expected amongst investors that there will be no further increase in the asset purchase facility or rate cut, as the country has avoided its triple dip recession, according to the latest GDP numbers. Moreover, the all sector PMI increased to 52.1 from its previous reading of 51 which further strengthen this argument that the economy is accelerating its growth at a faster pace.
Data in focus
Major economic data is due to release today for the GBP which could determine the trend. The manufacturing production for GBP on m/m is due to release at 08:30 GMT and the forecast is for 0.4%, while the previous reading was 0.8%. The asset purchase facility data is also due later on today at 11:00 GMT, and the forecast is for 375B. Finally, the Bank of England will announce its official bank rate and the forecast is to keep this rate unchanged at 0.50%.
The GBPUSD pair fell from its resistance level which was given in our analysis on 8th of May. The price is trading above the 100 day (shown in yellow) and the 50 day (shown in green) moving averages. The price action is also trading within the upward channel on a 30 minute time frame. The volatility for the pair remains low as the price is trading within the Bollinger band. The RSI is trading in line with the price action which means bias could be to the upside.
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