British Pound: Bears do not Concede

British Pound Bears do not ConcedeNovember was the fifth month of the fall of the British currency – GBP / USD pair went below the monthly Ichimoku Cloud. Given the technical picture, as well as the overall strength of the US dollar, there is every reason to expect continuation of the global downtrend.

In the first three days of the next week we will get the latest data on the state of the UK economy – PMI for November in manufacturing, construction and services will be made public. A meeting of the Bank of England is scheduled for Thursday. A quick reminder: the minutes of the November meeting of the regulator were more “hawkish” than expected by many: two members of the Monetary Policy Committee continued to insist on raising key interest rates. Meanwhile, it is unlikely that these representatives of the regulator will be able to win over to their side some others: the rate of inflation in the country remains low, the rise in house prices has slowed, low economic growth is based on government spending rather than increasing consumption, and corporations investment reduced.

The pair regained 38% of the decline starting from the end of October, which could give new strength to bear market speculators. The following week might see increase in the bearish pressure on 1.5600. The target stays at 1.5500 and 1.5380 levels. Resistance is located at 1.5890 and 1.5950.

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