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Pound Expected to Bounce to LB

On Friday the pound/dollar rate grew during European trade up to 1.5145 and grew to 1.5186 in the States.              

The eurobulls were closing their eyes to the Greek problem, whilst the poundbulls were doing the same to the elections in the UK. The dollar is falling on the back of weak statistics and expectations that the US Federal Reserve won’t lift interest rates in June.

Growth for the GBP/USD slowed by the U3 line at the 157th degree. From 135 and 157 degrees the rates of key pairs usually undergo a correction; at least to 45 degrees. In my case, the level is 1.5124. Taking into account that today is Monday and on Mondays I always look at the movement going against Friday, my target for sellers is 1.5120/25 (LB line or 45th degree).

At 13:00 EET the CBI industrial order books balance for April will be published.

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