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The second very popular currency pair among traders, the Cable, showed a mixed performance during the previous week, despite strong bearish outlook among Dukascopy Community members. During the first part of the week, the GBP/USD pair traded with no major changes, however, extremely weak earnings' data from the U.K. sent the pair considerably lower, down from 1.68 to 1.67. Meanwhile, the unemployment level in the country fell in line with predictions, while jobless claims dropped more than expected.
This week is considered to bring some important statistical data, including the consumer price index from both U.K. and the U.S., which can influence the following interest rates' decision of the Bank of England on Wednesday. Moreover, U.K. public finances are expected to register a positive balance, while retail sales are likely to rise further. It can support the GBP/USD pair at least at the current level of 1.6714 (also 100-day SMA) or even push it higher.
Despite that, keeping in mind the 75% bearish sentiment last week, now Dukascopy Community members are equally divided on the nearest future development of this currency pair. The median forecast is located slightly below the 1.67 mark for Friday of this week. As mimuspolyglottos expects, "I am not expecting high volatility in GBP/USD after the last week's downside burst. The pound is in support zone and it might attract short term buyers and profit taking in shorts could occur if support would hold for some time." AdrianWS supports this view, suggesting that "Confirmation of a Q1 Rate hike from the BoE should anchor the GBPUSD into a range for the time being."
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