Be careful with GBPUSD support at 1.2700
It is worth to pay attention to the dynamics of the GBPUSD near support area at 1.2700. A fall below this point may be a signal of a serious prospects revaluation, which can cause a fairly rapid reduction of the pair to the post-Brexit lows, just a little above 1.2000.
As Brexit draft plan published, now markets are shifting their focus to the Macroeconomics, and that may increase the pressure on the pound on speculation that the Bank of England may abandon its plans to raise the rates in the coming months. During this week only we saw:
1) The claimant number had grown for the fifth consecutive month. The Unemployment rate increased unexpectedly.
2) Consumer inflation shows no signs of acceleration.
3) Retail sales fell for the second month in a row.
As Brexit draft plan published, now markets are shifting their focus to the Macroeconomics, and that may increase the pressure on the pound on speculation that the Bank of England may abandon its plans to raise the rates in the coming months. During this week only we saw:
1) The claimant number had grown for the fifth consecutive month. The Unemployment rate increased unexpectedly.
2) Consumer inflation shows no signs of acceleration.
3) Retail sales fell for the second month in a row.