The pound is weakening, no matter what

31.03.2015
The GBP/USD pair remains under pressure from the "bears", despite the good statistics and the confident stance of the Bank of England.

Investor sentiment regarding the British pound is mixed. On the one hand, the Bank of England as much as it could, reassured economists and market participants by clarifying its position with regard to interest rates. However, the latest statistics on the UK were positive, which, in theory, should have strengthened the position of the pound. However, based on market reactions, the point is not in the GBP - investors are waiting for the block of US statistics on the employment market in March, expecting strong numbers and support for the USD.

According to statistics published this morning, the consumer confidence index in the UK by GfK for March rose to 4 points (+3 points), which was above market expectations and observers. The current value of the index is the highest in thirteen years. This is a good signal for the economy in which the population sees more pluses than minuses, and for the government.

The market has chosen not to respond to the release - it is likely that fundamental investors want to see a confirmation of the trend in the coming months.

The GBP/USD pair is clearly reaching for the support at 1.4740. With its breakdown the "bears" will open the way to 1.4670.
 
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.