According to the results of the recent survey conducted by Lloyds, the current sentiment in the British business circles leaves much to be desired after the Brexit referendum. To be more specific, the index has shown the worst result in 4.5 years.
The survey was conducted on June 24– 30, 2016, over the next week after the referendum. The results indicated a business confidence drop from 32 points in May all the way down to 6 points in June. Still, the index is above the levels seen over the last financial crisis in 2008.
The index measuring the U.K.’s business optimism dropped all the way down to -11.0 points over the reporting period, which is the first negative value since 2012. According to Lloyds, the survey results indicate the necessity to downgrade the short-term forecast. At the same time, it is not wise to rely on the results of a single month when making crucial decisions.
Forex
In the meantime, the British Pound is trying to recover within the scope of a short-term rally against the U.S. Dollar even though the longer-term bias is till in bear’s favor, Masterforex-V Academy experts report. To be more specific, the price move is currently getting its wave level increased while indicating the completion of the latest bearish move, which is wave a(C )/C inside the long-term downtrend. At this point, the price is building wave b(C ) inside of the move.
On breaking below the 1.2796 low, the currency pair will continue the downtrend. If that’s the case, the closest levels of support are 1.2671/22, 1.2553/14. In case of a break above the 1.3047 high, the price will likely start a bigger-scale move up – wave A/B of a bigger level. The key levels of resistance are the top of the descending MF sloping channel and MF pivot 1.3340.
