FX.co ★ GBP/USD. Forcast for March 28, 2013

Yesterday the pound preferred the negative scenario, which was amid the weak data on UK Current Account and drop of US Pending Home Sales. UK Current Account in Q4 deficit narrowed to 14 billion pounds against expectations for deficit of 12.8 billion pounds. UK Gross domestic product fell 0.3%, the same as previously estimated. US Pending Home Sales dropped 0.4% vs. forecast for 0.3%.

Today GfK Consumer Confidence Survey in the UK in March was flat -26 vs. forecast for -27.

The pound has almost regained yesterday’s losses. We expect that today this currency will be stable amid European negative. If data on US GDP in Q4 is revised upwardly, the pound will grow.

Technically, after the resistances of the indicator lines on the H4 on the level of 1.5164 are tested, then the target at 1.5222 opens, it is the conjunction of Fibonacci level 261.8% with the Fibonacci extension. This target corresponds to resistance of the trendline on the daily chart.