The attention of investors on the current week was focused on the meeting of Bank of England. As expected, no change in monetary policy was not made. However, the GDP forecast, which downgraded it for the coming years. turned out negatively for the pound.
Pound remains under pressure, the referendum on Britain’s membership in the EU is approaching. Recent public opinion polls showed that the outcomes of the June referendum are difficult to predict.
GBP/USD technical analysis and forecast for 05/16/2016 – 05/20/2016 week
The GBP / USD currency pair came back to the downward channel. On the daily chart the RSI shows the trend line breakdown, which signalizes harder declination. The GBP / USD forecast for the week 16 May 2016 — 20 May 2016 considers a reduction towards the area 1.42, where the growth of quotations may be expected. However, fixing prices below 1.42 will confirm a resumption of the downtrend.
