GBP/USD: CBI Raises UK's Economic Growth Outlook

GBP/USD: CBI Raises UK's Economic Growth Outlook

For the 24 hours to 23:00 GMT, GBP rose 0.37% against the USD and closed at 1.6132.

In the UK, the Gfk consumer confidence index unexpectedly declined to a reading of -30.0 in October, the lowest level in six months, and compared to a reading of -28.0 recorded in the previous month.

Yesterday, the Bank of England Deputy Governor, Charles Bean stated that the quantitative easing program of asset purchases, which has been the bank's main policy tool since March 2009, still appears to be effective at lowering borrowing rates throughout the wider economy.

In the Asian session, at GMT0400, the pair is trading at 1.6129, with the GBP trading marginally lower from yesterday's close.

Today morning, the Confederation of British Industry (CBI) raised its 2013 economic growth forecast for the UK to 1.4% compared to a previously estimated 1.3% growth rate. Additionally, it also forecast the growth rate to accelerate to around 2.0% in 2014.

The pair is expected to find support at 1.6092, and a fall through could take it to the next support level of 1.6056. The pair is expected to find its first resistance at 1.6153, and a rise through could take it to the next resistance level of 1.6176.

Trading trends in the pair today are expected to be determined by the release of Nationwide housing prices and manufacturing PMI in the UK.