GBP/USD Weekly Forecast – 15 February – 19 February

Events that marked the week:

From the UK, on Tuesday, Trade Balance figures were released. The UK’s deficit on trade in goods and services was estimated to have been £2.7 billion in December 2015, a narrowing of £1.3 billion from November 2015. The narrowing is attributed to trade in goods where the deficit has narrowed from £11.5 billion in November 2015, to £9.9 billion in December 2015. Analysts were predicting deficit of £10.4 billion. Between November 2015 and December 2015, the trade in goods narrowing was mainly the result of a fall in the import of goods of £1.7 billion to £33.0 billion; mainly reflecting a fall in imports of unspecified goods, which decreased by £1.0 billion to £0.4 billion.

GBP/USD Weekly Forecast – 15 February – 19 February

Pound break above 1.45 handle in the course of the last week, supported by dovish Janet Yellen's testimony which indicated that there will be no rate hike in the near future. Also, 1.44 was retested few times and now stands as a major support for this pair. Focus of the next week will be on CPI and job figures. Weaker than expected data would push pair lower with support around 1.4350 and 1.43 level in extension, so this is where we would consider buying the pair in short term-trends. Read more...

GBP/USD Daily Forecast – 12 February

From the UK, yesterday, RICS Housing Prices Balance data was published. British property valuers reported a surge of activity on Thursday as property investors tried to beat an increase in transaction taxes on rental investments coming into force in April.The Royal Institution of Chartered Surveyors said there had been the biggest increase in sales since April 2014 last month, and that 74 percent of participants in its monthly poll expected buy-to-let investors boost demand before April's tax rise. RICS's headline price balance held at December's downwardly revised level of +49, undershooting economists' forecasts in a Reuters poll for it to rise to +52 but close to recent highs. Read more...