Wednesday, June 10, 2009

BNP Paribas expects growth in the British currency

The British pound rising third consecutive day against the backdrop of speculation about the restoration of the British economy and end a two-day decline in the stock market. According to analysts BNP Paribas, British currency is still has a strong correlation with the stock market. However, the main factor contributing to the growth of the pound is the general improvement of investment conditions. The Bank believes that in a few weeks, a pair of pound / dollar may reach a level of 1.69. Regarding the short term, today, as expected currency strategists BNP Paribas, a couple has met resistance at around 1.6440. Then in the bank roll in the predicted area 1.6245 and 1.6080. While the pound / dollar fell to 1.6330. Nevertheless, the Bank believes that in the event of breakthrough resistance at 1.6440, a pair of pound / dollar could rush to the recent high at 1.6655. Now a pair of pound / dollar was at 1.6378. Demand in the 1.6325/20 (this level is the key, it can break a deeper correction to 1.6255/50) kept lowering the pound / dollar, and a pair of roll resistance at 1.6380/85. Next Ofer noted in the 1.6395/05 area. In the case of a breakthrough this area could further increase to a pair of 1.6440/50 and 1.6430.

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