The British pound is pulling down
04.03.2015
On Wednesday, the GBP/USD pair is trading down: the pound came under pressure from statistics and still can not find support.
The British Pound midweek traded downward. Pressure on the GBP was formed after a two month peak of 1.5551 for the pair. Whether investors considered the instrument overbought, or it was just time for a technical correction.
In addition, today's statistics were not very impressive. UK service sector at the end of February slowed its growth. The index of business activity in the services sector in the UK in February retreated to the level of 56.7 points against the forecast of growth to 57.6 points. In the components of the report it is noticeable that the level of wages has increased, and performance on new orders has improved.
For the Bank of England it is very important to monitor the dynamics of changes in the level of wages, which subsequently can become the basis for decisions on interest rates. Now that the new orders sub-index remains at a maximum of three months, we can say that economic growth can develop to be sustainable.
However, for the British pound this does not make it any easier. The GBP/USD pair tends to 1.5300, where the "bears" can relax. In the event that tonight’s US statistics are strong the pound will get a chance to go down to the support at 1.5270.
RoboForex Analytical Department
The British Pound midweek traded downward. Pressure on the GBP was formed after a two month peak of 1.5551 for the pair. Whether investors considered the instrument overbought, or it was just time for a technical correction.
In addition, today's statistics were not very impressive. UK service sector at the end of February slowed its growth. The index of business activity in the services sector in the UK in February retreated to the level of 56.7 points against the forecast of growth to 57.6 points. In the components of the report it is noticeable that the level of wages has increased, and performance on new orders has improved.
For the Bank of England it is very important to monitor the dynamics of changes in the level of wages, which subsequently can become the basis for decisions on interest rates. Now that the new orders sub-index remains at a maximum of three months, we can say that economic growth can develop to be sustainable.
However, for the British pound this does not make it any easier. The GBP/USD pair tends to 1.5300, where the "bears" can relax. In the event that tonight’s US statistics are strong the pound will get a chance to go down to the support at 1.5270.
RoboForex Analytical Department
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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.