Pound slows growth

The British pound slowed its growth against the US dollar during the European session after strengthening during the Asian trades. The growth of the GBP/USD was caused by the general weakening of the US dollar, as the attention of market participants begins to shift from the Fed to other Central Banks of the world’s leading countries. See “Analysis of the American Trading Session.“

Some pressure is exerted by a decrease in mortgage lending in the UK, which may slow the growth in the real estate sector of the country. According to the data, the approved mortgage loans by BBA amounted to 39.507 thousand, which is lower than the previous value of 40.417 thousand.

Technical Analysis: Due to the yesterday’s weakening of the US currency, the pair GBP/USD managed to gain a foothold above the resistance line of the downward channel on H1, which is a signal of a possible trend reversal in the short term. The main resistance level is psychology 1.3500, in case of overcoming it it is possible to speak about reversal of short-term trend and continuation of ascending dynamics of the instrument. The main support levels are 1.3395, 1.3370.

Fig. GBP/USD. The current price is $ 1.3449.

Alexander Sivtsov