Lee Hardman, Currency Analyst at BTMU, commented, “With fiscal policy set to remain tight, the burden to stimulate growth remains upon the BoE through looser monetary policy, and a weak/weaker pound”. The analyst added that a fragile external demand could hamper any support from a weak GBP, and these efforts could echo in higher inflation, affecting real incomes and consumption.
As of writing, GBP/USD is up 0.09% at 1.5108 facing the next resistance at 1.5330 (high Feb.22) ahead of 1.5393 (MA10d) and finally 1.5452 (high Feb.20).
On the downside, a breach of 1.5073 (hourly low Feb.25) would bring 1.4949 (low Jul.12 2010) en route to 1.4873 (low Jul.1 2010).
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