Thursday April 8 , 2010

GBP/USD outlook

Sterling is trending lower against the U.S. dollar for the third consecutive day ahead of the BoE decision, where the MPC is expected to hold rates intact at their low of 0.5% and continue holding their APF at 200 billion pounds. The large deficit in the government budget and the possible suspension of the parliament remains the main cause of the enormous pressure on the sterling pound; we believe that the price has now started preparing to enter the fifth downward wave, therefore we wait further decline for the pair to re- test the level 1.47800 then achieve the target of 1.43650 And thus complete the last wave for the pair, a moving average 100 for the pair sterling against the U.S. dollar at the level of 1.56400, still a strong resistance for the pair impermeable, all of that these reasons make us believe that the pair should be decline to the level of 1.43650.

Senior Analyst / Ali Hasan /FXCBS

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