GBP / USD: recorded in April March 2016 the biggest monthly gain


The pound is expected to record the biggest monthly increase since March 2016. The pound rose in April mainly by the April 18th British Prime Minister Theresa May announced that Britain will be held in June 8th ahead of the election news. The market interpreted this as an early election will lead Britain more smoothly to withdraw from the EU.
But the data began to show Britain back in Europe after the British economy on the toughness of recent retail and may be difficult to continue. The data was disappointing. In Britain a quarter GDP growth rate of the initial value from the fourth quarter of last year rose 0.3% to 0.7%, a sharp slowdown in the first quarter of 2016, since the low growth rate, and less than the expected value of inflation rose 0.4% go to the retail and other high consumption industries caused the damage, while inflation is higher, it is because the British and European referendum, due to the sharp depreciation of sterling.
The slowdown will temporarily cover up the strength of the pound.1.30 is still a long goal, especially the market almost certainly the British Conservative Party will win the election.
The pound against the dollar this month rose 3%, technical indicators are still bullish, 1.30. on Friday is expected to test the pound against the dollar rose 0.3%, driven mainly by the end of the flow of funds. The resistance at 55 week moving average of 1.2992, 613 million pounds in April 27th due to support low near 1.2839.1.2800, 1.29 have 787 million pounds 971 million pounds due to expire, near 1.30.
Uk house prices in April fell for second consecutive months, may be caused because of consumer demand. An early election news did not boost the combination of asset managers of confidence, they still expect the pound will fall.