The British Pound stays under pressure. According to UniCredit, GBPUSD may still initiate a price rally.
The latest uptrend was caused by the expectations of QE3 in the USA along with bullish technical indicators. Nevertheless, the experts say the fundamental picture for the UK economy is bearish. Therefore, a further rally of GBPUSD is unlikely to take place in the near future.
UniCredit recommends using any recovery up to 1.6000 as a chance to go bearish. The currency pair is expected to drop down to 1.48 within the next 3 months.
According to , the British Pound keeps retracing against the US Dollar. The experts report that GBPUSD is still forming wave А(С)/С of level Daily4.
A further rally will probably take place if the price breaks above 1.5911. If this is the case, it may encounter resistance around 1.5966/74. The current bullish wave will be completed as soon as the price overcomes the bottom of the MF sloping channel and consolidates below 1.5576 (as shown below).
