08, March 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

Bill Gross from Pimco was among those who sell the British pound. In his last message in Twitter Gross said that one should not bet on the currency. Perhaps there was a good time for this but now the UK economy is experiencing difficulties. Gross expects "aggressive softening" by the Bank of England to save the economy, but this measure is likely to increase the downward pressure on the currency.

He did not say whether we should expect quantitative softening after the Bank of England meeting which will take place today. Newman expects a further decline of pound, which has fallen from a peak of this year, U.S. $ 1.6370 reached in January to 1.4980 dollar recently.

The currency continued to fall against the dollar, falling below $ 1.5000, having worked on the Hour reversal pattern.

Indicators MACD, CCI and Momentum show a bearish trend while stochastics is turned up on the hourly chart. Immediate support is at 1.4985 (low of March 1, 2013) and 1.4949 (low of July 12, 2010).

Resistance is at 1.5110 (hourly high March 6), at 1.5200 (maximum 5 March) and 1.5223 (maximum of 28 February).