On Monday, the pound was moving downward slowly amid the thin market. From the technical point of view, the bearish tendency has increased. On the daily chart the price has tested the support of Kruzenshtern indicator line (blue sliding) and the level of Fibonacci 361.8%. On the H4 the price has consolidated under the Kruzenshtern line and marlin oscillator moved into the negative territory. We consider that the major reason it left the risk territory is investors' expectations of a new stage of QE promised by a new bank of England Governor Mark Carney. There is no macroeconomic data on the UK today. In the US, strong data on Richmond Fed. Manufacturing Index and Consumer Confidence in May (published at 18:00 GMT+4) is expected. Amid the news the dollar may strengthen.
Technically, we expect downward movement toward the first target 1.5032, the low of April 4. The second target is 1.4986, the low of March 1.
If the rate consolidates above the testing level 1.5128, a short-term growth to 1.5173, the low of May 15, is possible.
