UBS analysts assume that the recent events make it possible to be more optimistic about the British Pound prospects. According to the currency strategists, yesterday’s UK GDP data will probably be upgraded. Some leading economic indicators, including PMI, look promising.
In the meantime, the BoE’s MPC members are leaning more towards toughening the bank’s monetary policy while signs of technical recession are unlikely to make them change their minds. Investors are positive about the UK government’s tax consolidation policy.
UBS analysts have left their forecasts for GBPUSD unchanged around 1.6250. As for ERUGBP, the currency pair is expected to see a decline (amid the eurozone crisis) down to ₤0.81 within a month and ₤0.77 within 3 months.
According to , the British Pound keeps strengthening against the US Dollar. GBPUSD is forming wave 3(С) or С(С) through elongating. The closest levels of resistance are 1.6237, 1.6280, 1.6345. The current upswing will be completed as soon as the price breaks below the bottom of the MF sloping channel and pivot 1.6080 (as shown below):
