The bearish pressure on the British Pound is caused by the increasing external trade deficit, HSBC experts assume. The deficit jeopardizes the British economic recovery.
An increase in the basic deficit leaves no hope for deficit reduction. This suggests that the UK government may feel more pressure over further monetary easing. At the same time, the Bank of England’s waiting stance will only increase the pressure on the national currency.
Forex.
According to , the British Pound continues its mid-term rally against the US Dollar. The experts report that GBPUSD is forming an upswing represented by wave А(С) or shortened С of level Daily.
A further rally will occur on breaking below 1.5744. if this is the case, the price will probably encounter resistance around 1.5766, 1.5776. The current bullish move will be completed as soon as the price overcomes the bottom of the MF sloping channel and consolidates below 1.5635 (as shown below).
