Pound – weekly review

Pound is currently trading at 1.537, the upper resistance 1.547 & 1.56, support lies at 1.53 & 1.519. Pound is expected to trade in the range with bullish bias.
Previous week recap -

• Pound is benefiting from the haven flows due to political uncertainty in the Euro zone

• Data coming out of UK were mixed in nature. Slowdown in inflation accelerated, whereas growth was seen in the construction sector.

• Employment situation also improved in UK

• Business leaders are positive on UK, over coming months

• Debates over the monetary policy heat up in (BOE) as inflation falls below zero

Current week -

• House price data & the GDP on Thursday will be key focus for the week.

• Mark Carney & several other deputy governors will be testifying and speaking on monetary policy on Tuesday and Wednesday

If the members of the BOE maintain their position of rate hike to be the next move, pound could take bullish queue from it and move to the higher side of the range against dollar and outperform other majors.

Share this: