Pound managed to win back losses. Review on 26/02/2016
26.02.2016
In the second half of the day, the GBP/USD pair is trading with an increase, but it has little effect on negative outlook.
The British pound rose slightly in pairing with the USD on Friday. The current quotation of the instrument is 1.3943. Over the past three months, the GBP has weakened in tandem with the US dollar slightly less than 8%. It seems that at the moment the GBP does not have many reasons to strengthen, especially as the pound is still being dragged to "the bottom".
Today's statistics showed that the consumer confidence index in the UK in February dropped to 3 points against the January level in 4 points. According to GfK Institute observations, consumer sentiment gradually deteriorated. This may be partly due to seasonal factors - the sales have ended, and although prices are not rising, they are still unattractive for the conservative British. When calculating, observations of past and planned purchases are observed. The indicator is assessed objectively enough, so the British pound reactions to it are clear and logical.
If the optimism of consumers is reduced, the support for the GBP from this side in the first quarter will be very small. This point can then play against the pound.
It is not excluded that the pound will refresh many month lows before the end of winter 2016.
The British pound rose slightly in pairing with the USD on Friday. The current quotation of the instrument is 1.3943. Over the past three months, the GBP has weakened in tandem with the US dollar slightly less than 8%. It seems that at the moment the GBP does not have many reasons to strengthen, especially as the pound is still being dragged to "the bottom".
Today's statistics showed that the consumer confidence index in the UK in February dropped to 3 points against the January level in 4 points. According to GfK Institute observations, consumer sentiment gradually deteriorated. This may be partly due to seasonal factors - the sales have ended, and although prices are not rising, they are still unattractive for the conservative British. When calculating, observations of past and planned purchases are observed. The indicator is assessed objectively enough, so the British pound reactions to it are clear and logical.
If the optimism of consumers is reduced, the support for the GBP from this side in the first quarter will be very small. This point can then play against the pound.
It is not excluded that the pound will refresh many month lows before the end of winter 2016.
Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.