FX.co ★ GBP/USD Forecast for December 21, 2012

U.K. retail sales remained unchanged in November. Sales were forecast to grow 0.3%. However, investors decided not to jump the gun and the pound and the euro moved in unison. Despite favourable U.S. GDP data (3.1% against 2.7%) and existing home sales ($5.04 m against %4.76 m) the currencies were flat.
At 13:30 GMT+4 considerable number of indices is released. UK Public Sector Net Borrowing in November is expected to be at the level £14.3 bn against £6.5 bn. UK Current Account deficit widens to £14.1 bn in 3Q (vs. £20.8 bn). 3Q UK GDP revised is expected to be 1%. UK Business investments data in 3Q is expected to rise 3.5% against 3.7%. The expectations are rather weak and if there are no positive figures from the USA according to Budget Talks (it is slightly possible as the talks will resume Dec. 27), then the British currency will continue downward movement.
On 4H the first target is 1.6200, the Krusenshtern trendline, the second is 1.6197, and the third, in the range 1.6169 to 1.6175, the range of the highs of Nov.1- Dec.