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The Pound/Dollar Smoothly Retreats to the Support of 1.5660/50

2012-06-21
Yesterday, the trading was volatile for the British pound. After the last Bank of England meeting minutes' publication, the pound/dollar was driven to the support in the proximity of 1.5660/50, but the pair was able to recover quickly, and it even tried to grow in the direction of the 58th figure, though unsuccessfully. During the announcement of the FOMC meeting results, the pound managed to test both, the level of 1.5650 and 1.5750, but could move in neither that nor in some other direction. A small increase in the euro/pound is putting pressure on the pound/dollar pair, and it is close to the support at 1.5660/50 again. The breakdown of this support will lead to the drop to 1.5600.
Author: James Harrison, IAFT Analyst

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