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During the previous week, the Cable moved pretty much in the same manner as the most popular currency cross. With a calm beginning of the trading week, the Pound Sterling started depreciating from Tuesday, when some strong fundamentals were released in the United States. Moreover, inflation level in Britain dropped more than predicted, while the Bank of England's MPC split on the vote for interest rates. Alongside, weaker-than-expected retail sales in this country pushed the Cable even more to the red zone, while Dukascopy traders forecasted the pair to stay around the same level over the whole week.
Opposite to the single European currency area, the U.K. is not supposed to be rich on fundamental statistics in course of this week, while the GBP/USD currency pair will be mostly driven by American news and technical indicators for this particular cross. Trading around the 1.6576 level at the moment, the Pound has a potential to decline at least down to the major level of 1.6500, if the U.S. GDP growth data on Thursday is released positive as expected.
On the other hand, this week's participants of Dukascopy quiz became more bullish on pair's perspectives, as now 56.2% of all votes are long, while the average prediction is located on the weekly pivot point at 1.6608. khalidamassi supports this idea, suggesting that "The pair get oversold, the pair may consolidate near 1.66 before heading up towards 1.6750 at week end." Meanwhile, geula4x thinks strongly opposite, assuming that "GBP/USD seems to be strongly bearish on the daily chart. Price has broken below 1.6700 round number. The area has held as support between May 28th till June 4th. This previous support area is now expected to hold as a resistance on any pullback. Next support lies around 1.6480, which held price from March 20th till March 25th."
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