The British Pound has come under pressure this week and we expect a break lower from current levels. Having made a key technical reversal in mid February after testing the 2011 high. Recent data has not been supportive for the pair. With little real attempt to break to new highs the indication is for a move lower.
So far price has held above 1.6580 support. However a daily close below this level would be expected to open up further falls. Below this level look to 1.6540 as the next level of support.
The technical outlook points to further loses. Price has ended below the short term moving averages on a daily close. Furthermore RSI has turned lower, passing across a reading of 50.
News up for release this week
12/03/14 – BOE Quarterly Inflation Bulletin, RICS House Price Balance
14/03/14 – Trade Balance, CB Leading Index (m/m)