One of the main factors that can affect the dynamics of cross-country at this stage the expectations are for monetary policy adjustments. Recent data on the UK labor market, reflecting more active than expected (2.9% vs. 2.5%) increase in average wage growth suggest waiting for the price pressure due to the enhanced consumer activity. Against this background, the market once again, there were rumors that the Bank of England may soon decide on the rate increase. At the same time, by the European Central Bank offers a possible extension of the quantitative easing program, or the extension of its deadline. Therefore, the advantage at this stage is clearly on the side of the British currency.
In the area of 0.7216 level the pair has formed a support. A break of this level could lead to increased sales that will provoke a further decrease in quotations pairs. In addition, the prices were fixed below the 50 interval moving average, indicating the possibility of continuing the downward movement.
Warning: Profitability in the past does not mean profitability in the future. Any projections are for information only and does not guarantee a result.