Last week, the British pound against the dollar again fell back to near the long-term increase in Tongdaoxiagui. As investors worried about slowing global economic growth, leading foreign exchange, hedge must lift the dollar to buy, but Fed officials on the implementation of QE3 short-term opposition to also support the dollar, the pound down against the dollar under pressure again.

From the British point of view, Moody’s will downgrade attack last week, turning the UK, claiming that if the British economy to slip further fiscal consolidation coupled with ineffective, the United Kingdom or the loss of AAA class rating. Combined with indicators of the Bank of England keep interest rates will be announced as scheduled at a record low of 0.50% unchanged, 2,000 million pounds while maintaining the same scale of quantitative easing, the market that the UK economy appears to have overshadowed the weak above the central bank targets inflation concerns, the pound fell sharply under pressure. In addition, last week announced a major UK economic data is not satisfactory, the pound extended losses. Data show that the UK shop price index rate 5BRC rose by 2.3%, the former value increased by 2.5%. 4 UK industrial output fell 1.7% rate, expected growth of 0.1%; rate dropped 1.2%, expected growth of 1.3%. Britain announced 5BRC and overall same-store retail sales were down rate, below market expectations. Hind, the fundamental weakness in the overall dovish Bank of England policy-oriented, the British pound against the U.S. dollar short-term or difficult to pick.

This week, Britain will have a number of economic data, if the economy showed further deterioration, the British pound against the U.S. dollar will be hard hit. In addition, rating agencies frequently view of the recent launch an attack on the United States and Europe, does not exclude the further spread of sovereign debt crisis, and may worsen, investors should pay attention to avoid the associated risks.

GBP/USD at chart

Direction this week: shock finishing slightly down. At the map shows, MACD indicators instead of zero-axis side down, RSI indicators are somewhat neutral.

Operation strategy: prudent short, target 1.6060, stop 1.6325.

GBP/USD 4-hour chart

Days of orientation: shock finishing. 4-hour map, the average system was arranged in short, MACD indicators continue to test a low, Kongfangliliang growing, RSI index slightly weaker.

Operation strategy: range operation, fluctuation range of 1.6180-1.6280. (J & A MJS/Hu Lina)

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