Experts say British Pound may fall down to 1.53 against US Dollar

Market Leader informed

Experts warn: GBPUSD may decline in the short run down to 1.5300.

It is mainly connected with the weak and slow recovery of the British economy and growing inflation in the country. Such a situation makes the Bank of England unable to toughen its monetary policy.

Experts underline that in the short run we should get ready for the GBP decline against USD because of the declining forecasts for the UK economy in general. Moreover, the US treasury bonds have become more attractive for investors while the sentiments concerning the US economy remain positive.

Movement scenarios: markup. Daily-H1-M15. GBPUSD. Jan 4^th 2011

1. Upward scenario (CP1)

Support level: 1.5470 is critical for this variant of movement. A breakout of it cancels the scenario.

Resistance levels:

Volatility indicator “Saks Channel”: 1.5483 - 1.5565 - 1.5647.

Local highs: 0.9964 - 1.5582. Buy target grid of the basic indicator: 1.5566 - 1.5598 - 1.5647.

Global Financial Crisis Helping to Sink?

Market Leader informed

The search for ways out of the crisis in the western world hasn’t yielded any clear answers to what path to escape will be appropriate. Many western economists offer demand stimulation from the state budget and tough monetary policy as an urgent measure. Such steps might have a softening effect in the near term but, given long-term prospects of development of western countries they have to increase productivity in order to ensure large-scale emergence from the crisis. Today’s situation shows quite clear similarities between the economic position that European countries and the US have ended up in and the situation that emerged in Japan as a result of the 1992 crisis.