British pound attempted to recover at the beginning of the past week, but was capped by the 1.4450 mark (trend resistance). The pair slipped to 1.4200 by the end of the week, forming a long-legged candle on the weekly chart. The 55-day moving average that acted as a support was decisively broken by the bears.
British pound has potential for more downside on the coming week, targeting the next major support at 1.4070/50 area. In the medium-term we still remain bearish for the pair, waiting for the 1.3500 mark to be reached before June.
Next week we’ll be watching the UK construction and services PMI indices on Monday and on Tuesday. On Friday, pay attention to the manufacturing production figures.