FX.co ★ The pound flew high and painfully fell

GBP / USD

The British pound suffered from being overbought amid the expectation of a good Brexit deal and traditional speculation. Over the past five sessions, the pound returned to the levels in the last week of January and lose exactly 400 points. Against the background of the dollar index growth on Monday at 0.68%, the pound was reduced by 59 points yesterday. Investors paid special attention to the house sales growth in the US secondary market in March (5.60 million versus 5.54 million in February), although the stock market (S & P500) grew by 0.01% only.

The March assessment for UK net borrowings in the public sector was published today, with the expectation to increase from -0.3 billion pounds to 1.1 billion pounds. The April balance of production orders from the CBI is expected to remain unchanged in 4 points, this indicates weak growth and the lowest in the past five months.

The United States will sell new homes for March, with a forecast of 625 thousand against 618 thousand in April. We are anticipating for the further fall of the British pound in the range of 1.3800 / 20.

* The presented market analysis is informative and does not constitute a guide to the transaction.