Vlad Demochko
The analysts working for Standard Bank Plc have just revised their forecasts for EURGBP. They assume that the Bank of England is not afraid of a strong pound and will be more tolerant in case a further rally occurs.
According to Steve Barrow, an analyst from Standard Bank, the strengthening of the British Pound will be acceptable while the British economy is showing signs of recovery. At the same time, they expect EURGBP decline down to 83.00 by the end of Q1 2014. Therefore, the previous forecast was downgraded by 1.2%.
Faster pace of economic recovery in the UK during 3 quarters gave analysts to understand that the BOE will toughen its monetary policy earlier than expected.
According to Masterforex-V Academy, the British Pound is recovering from the recent downswing against the US Dollar. The experts report that GBPUSD is still forming a downswing represented by wave А/b of level H8.
A break below 1.6022 will start wave 5 or the Hound of the Baskervilles pattern of Elder/MF with downward targets around 1.5995, 1.5978/69, 1.5915/06. The current bearish move will be completed as soon as the price overcomes the top of the MF sloping channel and consolidates above 1.6209 (as shown below).
Vlad Demochko
