FX.co ★ GBP/USD. Forecast for June 27, 2013

Yesterday the Bank of England published financial stability report and it was not optimistic. The Bank outlined the risks which are observed in the short term. UK Chancellor of the Exchequer George Osborne set out spending cuts for the next year. Announcing budget reductions yesterday, Osborne protected spending on defense, schools and hospitals and increased outlays on science and transport infrastructure at the expense of local governments and welfare. Amid the strength of the US dollar, the pound dropped 113 points.

Today at 12:30 GMT+4 UK Current Account is published in Q1 and UK GDP in Q1. Current Account is expected to be -11.9 billion pounds vs. -14.0 billion pounds. GDP is expected to be flat, 0.3%. Data on the US on Personal spending, Initial Jobless Claims, and Pending Hone Sales is expected to be better than expected.

From the technical point of view, the price is in the area of reversal towards the correction, on the daily chart the drop has stopped on the support of trend line, on the H4 a double convergence has been formed with Marlin oscillator and indicator line makes persistent attempts to move into the positive area. If the price consolidates above the testing level 1.5341 we expect the price at the level of Fibonacci 61.8%, which coincides with the low of June 20, 1.5411. If the price consolidates above the level, the second target, the range 1.5462/78, the highs of June 24-25 opens. If the rate overcomes the lower testing level 1.5295 we expect one more movement to the range 1.5254/72, which was formed by the support of trend line and the low of June 4.