Community Forecasts for June 30 - July 4: GBP/USD 1W Chart

Source: Dukascopy Bank SA
© Dukascopy Bank SA
The Sterling remained supported above the 1.70 level versus greenback on Friday, trading close to its six-year highs on speculation the BoE would raise the interest rates before the end of the year. The Cable finished Friday's trading session at 1.7036 to post a weekly rally of  0.05%. A report on Friday showed that the U.K. economy grew by 0.8% in this year's  first quarter, giving the pair a positive lift, while the BoE's announcement about a new affordability test on banks and a cap on home loans did not seem to change expectations that the bank will increase interest rates before other central banks.
As for this week, the Cable advanced to its highest level in six years, breaching the 1.71 level against the US Dollar to end the session at 1.7106.
Despite the recent rally of the pair, Dukascopy community members hold a rather bearish view on the currency pair, as 56% of those polled think the pair will trade down. According to the weekly survey, traders predict the Cable to finish this week at 1.7003. "Aslamhammad" sees the release on non-farm employment change pushing the pair back to 1.69 levels, while "Nacerdz" relies on the technical indicators which show that the couple is overbought. On the other hand, Khalidamassi argues that the "the pair is supported fundamentally after Mr. Carney hint of rate hike before 2014 end," and is strongly bullish on the Pound.
Among fundamentals, the pair is likely to be impacted by data on U.K. construction PMI due on Wednesday, Services PMI released on Thursday, as well as several data releases on the world's largest economy.


© Dukascopy Bank SA

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