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During the December 15-19 trading week the Cable developed in a rather bullish environment, but temporary upward movements were sometimes changed by negative tendencies. The pair started the last week on monthly support line at 1.5703. On Tuesday the Pound was higher against the Dollar, even though data showed that consumer price inflation in the UK rose at the slowest rate in 12 years in November, as decreased to 1% on the annual basis. Nevertheless, the pair dropped on Wednesday, despite optimistic news that the UK claimant count change fell more than anticipated last month by 26,900, while the unemployment rate remained unexpectedly unchanged at 6% in three months to October. From the American side, the Federal Reserve is not seen raising interest rates until 2015, but many investors bet that last Wednesday's statement, which suggested that borrowing costs will remain low at least till April, provided support to the Greenback. Meanwhile, the US core CPI decreased to 1.7% in November. The Pound held steady on Friday, after the release of lower-than-expected public sector net borrowing in Britain, which equaled to 13.4 billion pounds in November.
In course of this working week, Dukascopy Community members forecast the GBP/USD pair to drop further, as almost 58% of all votes stay bearish. As predicted by traders, the Cable may close around the 1.5640 level this Friday. Britain's Final GDP for Q3 has already been announced, as it rose 0.7%, in line with estimates. Among American news, a sharp drop in sales of existing homes by 6.1% in November is predicted to have a medium-term impact on the Cable. The most part of US will be published on Tuesday, including Final GDP, durable goods orders and new home sales.
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