The British Pound lost a bit of its value against the US Dollar by 0,65% during last trading week even though the recent UK GDP report came out positive. In particular, the GDP report came out positive, thereby matching analysts expectations at 3,1% in Q2 2014 (y/y).
Still, one of the reasons why the British currency is weak at this point may be the fact that the current and pre-crisis levels of productivity do not match each other. While, the headlines keep on creaming about the British economy hitting and exceeding the pre-crisis levels, nobody has made a prediction concerning the economic expansion with a glance at the demographic factor.
The thing is that the GDP per capita slowed down from 114% down to 106%. The data were published by Eurostat. So, this seems to be the reason why the British Pound keeps on losing value against the US Dollar.
The British economy has really hit the pre-crisis levels. Still, it has lot of challenges ahead in order to restore the GDP-per-capita value in order to recover form the crisis for sure.
Forex
Meanwhile, Masterforex-V Academy has conducted comprehensive analysis of the Daily chart of GBPUSD to find out the near-term prospects of the currency pair for the forthcoming trading week.
In particular, the experts say that there are 2 mid-term scenarios: a further decline and a recovery.
If to take into account the big amount of major US economic figures coupled with the bearish domination, we can assume that the downtrend is the more likely scenario at this point. If the price breaks the 1,6951 support, we may well witness a further downswing down to 1,6918 and 1,6841.
Alternatively, a break above 1,7059 will give way to 1,7151 and 1,7191, thereby letting the bulls try to take the initiative.
In mid-term perspective, the price is consolidating close to 1,6951. If the price manages to overcome this support, we are likely to see GBPUSD going further down to 1,6918 and 1,6841. Still, if the consolidation ends up with the price going up and hitting 1,7054, this may result in a further rally up to 1,7151.
