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The GBP/USD currency pair moved in a strong downward manner during the whole period of previous trading week, as British fundamental data used to be quite mixed. On Tuesday, UK government borrowing unexpectedly increased last month, while expectations for higher interest rates continued to underpin Dollar demand. According to the Office for National Statistics, British public borrowing rose to 12.1 billion pounds in August from 10.7 billion pounds a year earlier. As a result, starting a week around the 1.58 mark, the Cable went down to 1.52 in the morning on Friday. However, Dukascopy Community members, expected a positive move during the whole week, as 64% of votes were bullish.
Following negative development of the pair during September 21-25 week, participants of our weekly Community Forecasts quiz decided to become much more bearish on the Cable, as currently only 45% of them support movement to the north in course of this week. The average prediction, in turn, is now located at 1.520 level. Among important fundamentals from Britain, traders could pay attention to the report on net private lending on Tuesday and manufacturing index announcement on Thursday, while by the end of the week, additional attention could be paid to the UK construction index. Csan 86 supports the bearish move for the time being, he predicts the GBP/USD currency pair to start appreciating eventually: "The trend is undecided to me in a long-term perspective but lower high lower low pattern started to developed on the daily chart. This strong decline - on the last on and half weeks - is an unfinished breakout attempt which will probably continue on the next week. If it will happen the 1.5000 strong support level can be the next station for the price."
The price have broken some short-term trendline and after all in my opinion this pair is bearish on short- and medium-term either.
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