FX.co ★ GBP/USD. Forcast for April 22, 2013

On Friday, Britain lost its top credit grade at Fitch ratings. Rating agency lowered the UK to AA+ from AAA with a stable outlook, it said in statement in London. The pound was under additional pressure which was made by US stock market. General Electric lost 4% on Friday, McDonalds lost 1.95%, and IBM lost 8.28%. As the result the pound lost 50 points.

We expect the local downward movement of the pound. When the testing level of 1.5217 is broken, the target at 1.5182 opens, then 1.5155. In terms of technical correction testing of Fibonacci extension on the H4 (1.5258) is possible, however it is difficult to break it.

In the short term (on Wednesday and Thursday) the macroeconomic data on the UK and US is expected to be better (Retail Sales, Loans, GDP) and the price may resume the uptrend, 1.5404 and higher. The effect made by Fitch ratings will be leveled soon, as two months ago Moody’s lowered the UK one degree and Fitch just followed it.