On Friday, the pound was consolidating in the range of 20 points and closed the day declining 14 points. Citigroup upgraded their UK GDP forecasts following upturn in housing, spending and exports, to now see UK GDP +1.1% (from 0.9%) in 2013, and 2.1% (from 1.3%) in 2014. It is likely that amid positive data major investors closed the sells (the volumes on the top were considerable).
Today there is no data on the UK and the US; we expect the pound will slightly decline before the publication of Minutes of FOMC meeting. There are enough target levels before final conditions for decline. The first target is 1.5600, the high of May 1-6, the second target 1.5572, the high of August 8, the third target is 1.5545, the fourth target is 1.5508, support of lilac trend line on the H4, and the fifth target is 1.5495, significant support of May 1-6, June 7-10, and August 15. Consolidation under the fifth target consolidates the bearish tendency.
