For the 24 hours to 23:00 GMT, the GBP rose 0.78% against the USD and closed at 1.5500, after the NIESR forecasted that Britain’s economy grew at a faster pace in the March-May 2015 period, recovering from a weak first quarter.
The think-tank NIESR estimated that GDP in the UK registered a rise of 0.6% between March and May, following a revised 0.5% increase in output between December-February period. The agency also added that these estimates were consistent with a rebound of economic growth in the second quarter of this year.
In other economic news, industrial production in the nation rose 0.4% MoM in April, surpassing market expectations for an advance of 0.1% and following a 0.4% increase in March. On the other hand, manufacturing production unexpectedly contracted 0.4% on a monthly basis in April, compared to a similar rise in March.
In the Asian session, at GMT0300, the pair is trading at 1.5498, with the GBP trading marginally lower from yesterday’s close.
Overnight data showed that Britain’s house price balance rose to 34.00 in May, compared to a revised level of 32.00 registered in April, while market expectations were for it to rise to 36.00.
The pair is expected to find support at 1.5392, and a fall through could take it to the next support level of 1.5287. The pair is expected to find its first resistance at 1.5579, and a rise through could take it to the next resistance level of 1.5661.
The currency pair is showing convergence with its 20 Hr moving average and trading above its 50 Hr moving average.