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GBP currency pair 2015: Overview of British Pound currency pairs 2015.

GBP Currency Pair 2015

2015 for British Pound ends with decline

The UK referendum on the European Union membership in the next year will be a source of pressure on the pound sterling. Up to this point the British currency counting from the current levels should feel pressure from the other factor – external deficits of the country.

If there is no indication that the situation in the UK economy is improving it will form the basis for the devaluation of the GBP/USD. Earlier the pound fell to 8-month low of 1.4865 due to the chance drop of a rate hike from the Bank of England in the upcoming year appeared after the slowing of wage growth and worsening of inflation expectations. In addition, the dollar vigorously strengthened after the rate hike by the Fed. Another risk factor is the threat of Brexit.

Then, the currency pair was trading higher by 0.26% in the area of 1.4941, near a session high at 1.4950. The pair was supported by bids near 1.4885 against the backdrop of a weakening dollar after previous active growth. Resistance is marked at 1.4958, 1.5004. Support lies at 1.4909 and 1.4886.

The EUR / GBP currency pair 2015 cross-rate is strengthened for a third week in a row. After the cross-rate has not reached previous lows of 0.6935 and formed a reversal from 0.6981, the course began to grow. The growth was expected to continue, though the new resistance could be met in the 0.7400 area in the form of the bottom border of Ichimoku cloud.

Now USD / GBP currency pair 2015 fell by 70 points to 1.4832 against the background of general strengthening of the US dollar and the growth of the EUR/GBP cross-rate. There wasn’t any news behind the decline of course. After the Christmas holidays the market remained illiquid. The five-hour increase in the EUR/GBP by 39 points to 0.7394 was enough to derail the pound.

Till the Australian currency remains under pressure, and there is no bearish divergence between the AUD, there is a probability of the test level of 2.0026. The rate drop below 1.9250 will cancel the growth scenario. On Friday on weak NFP the AUD / GBP currency pair 2015 dropped to 1.9337, but by the end of the day managed to recover to 1.9543.

The Australian currency remains under pressure due to the decline in iron ore prices and expectations of further easing of the monetary policy of the Reserve Bank of Australia. On the background of the General decline of the US dollar, the pound feels much better than the Australian dollar.

The NZD / GBP currency pair 2015 declined for five days in a row. According to the meeting, the Bank of England kept its interest rate at 0.5% per annum and confirmed the amount of redemption of assets in the amount of 375 billion pounds. Eight out of nine members of the Monetary Policy Committee voted for maintaining rates at the current level.

GBP/JPY remains to trade within the long-term downtrend. Correctional growth rate of the pair supposedly ended on the high of 189.00, where the upper border of the emerging downward equidistant channel can be drawn. The formed bearish divergence confirms the possibility of the end of the correction on the indicated level. The formation of the received divergence was obtained on the daily chart where the resistance level of 196.00 still remains urgent.

By Chieffinancing 25.07.2016

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