Forex news. UniCredit strategists are expecting the fall of British pound sterling to $1.5500. Negative processes in British economy are the main reasons of the expected fall.
The absence of optimistic economic perspectives, the risk of new wave of recession, the complicated situation at real estate market, and the anticipation of additional measures on quantitative keep bringing negative attitude of investors to the pound, as admitted by J.P.Morgan strategists. The situation is worsened by the risk of reconsidering the rating of British financial institutions towards a decline: since May Moody’s Investors Service is keeping a close eye at the indicators of British banks, which are very much dependent from the financial health of Europe.
Analytics’ opinion is proved by the decline of British pound rate: GBPUSD currency pair has moved into a long-term bear trend. A long-term bear wave А(С)/С is currently being formed by means of prolonging the mid-term sub-wave С, as admitted by the experts of Masterforex-V Department of In-Depth Trade System Study. It is hard to say that the pair has reached the level of $1.55: breaking the level of 1.578 has not been proved yet, and the level of 1.5750 is being kept by the long-term bullish pivot MF, which represents support. On the other hand, the long-term trend is bear, and its termination will be announced by breaking pivot MF 1.6453 and a long-term sloping channel MF.
