FUNDAMENTAL ANALYSIS
The pound is starting to trade sideways amid mixed confidence in the UK and incertitude concerning the approaching elections. As we enter the campaigns period, poll results are starting to influence the pound which could fall into choppy action until election results.
With signs of improvements in the manufacturing and construction sectors, the fundamental outlook turns to neutral.
However, many factors prevent investors from moving full speed ahead with long positions such as downard inflationary pressures and a still very weak labour market.
On another hand, the Bank of England is uncertain of its own monetary policy and has decided to stop its quantitative easing program last February in a "wait-and-see approach. However, the Monetary Policy Committee says it could restart the program if needed.
TECHNICAL ANALYSIS
The 4-hour charts reveals choppy movements without a clear direction in the market. The pound is still stuck within a wide range between 1.5380 and the 1.4800 support. Only a move above 1.5400 would allow us to consider a new up trend.
The daily chart reveals a mixed situation. The long term trend is still to the downside, but the rebound off 1.4800 could suggest the formation of a double bottom.
Resistance levels:
- 1.5380
- 1.5575
Support levels:
- 1.5126
- 1.4800
All information on this page is subject to change. The use of this website constitutes acceptance of our terms of use. Please read our risk disclaimer and privacy policy
