Pound Dims Further As Industries Facing Slowdown
Early this week, the UK CBI released its Industrial Trends Survey for the first quarter in 2016. The report showed that total new orders continued its 4% decline in the preceding quarter due to a fall to -7% from the previous reading of -2% in export’s balance. Meanwhile, the average unit increased 8%, the two-year fastest pace, nearly meeting the long run average (10%).
According to data released today, March’s mortgage approvals in the UK year on year were up 20%, including a rise of 25% and 14% in remortgaging and house purchases, respectively. The gross mortgage borrowing created reached its highest level since April 2008, registering at £17.1 billion last month, surging up 64% compared with the same period a year ago.
In the US, The Commerce Department on Monday reported that total home sales fell for the third consecutive month, marking a 1.5% drop to an annualized pace of 511,000. The real-estate sector in the US is now witnessing its slowest growth since July 2014.
Today, the Federal Reserve Bank started its two-day monetary policy meeting. Markets hold no expectations of a rate hike at this April meeting as some FED’s officials have already expressed their dovish stance on rates, due to weak data on economic growth. Ahead of the central bank’s decision, the dollar index DXY is down 0.21% from its previous close, at 94.6.
Fig. GBPUSD H1 Technical Chart
The Stochastics chart shows that the pair is striving to get out of overbought territory after testing the resistance of 1.46369. The sterling is anticipated to continue tumbling against the greenback. The 23.6% Fibonacci retracement level is expected to be reached and become the next support of the price chart.
Sell at 1.45688, Stop loss at 1.45814, Take profit at 1.45585.