GBP/USD (current price: 1.2429)
The Pound reversed its previous gains on Friday, despite the slightly bullish economic releases coming out from the U.K. BBA Mortgage Approvals came in at 44,700, as the real estate market remains mixed amid the Brexit fears. U.S. New Home Sales were below the expected level for the second month in a row, coming in at 555,000 units compared to the consensus estimate of 575,000 units. The revisedUOM Consumer Sentiment Index was close the estimates at 96.3.
Our assessment: The cross is still trading near the 1.25 level following the bullish move in January. The long-term trend is still neutral, with support at 1.2350, and below that at the multi-decade lows near 1.20.
