Pound / dollar is trying to recover losses

Pound / dollar has found support near $ 1.5780/75 and after repeated attempts failed to break below, few recover previous positions, but dealers note that bears re-activated around $ 1.5850/60 and the inability of the British currency back above this area faces result in the resumption of sales and return to the recent level, and then to the support in the region of $ 1.5760/50. Currency strategists BNP Paribas, arguing about the prospects of development of the market situation, also note the possibility of testing indicated support, but do not exclude and a deeper correction pair. Investors remain very sensitive to negative news, which allows you to count on new attacks weaken the appetite for risk, positive for the U.S. currency. In addition, the bank draws attention to the fact that the recent increase in returns, including the British government bonds, do not look quite positive development for the currency risk, since it implies higher costs of borrowing by corporations, in the current environment may become a factor in slowing down the process of economic recovery. Meanwhile, a number of changes to the technical picture is also not look particularly favorable for the British currency, and BNP Paribas believes that in the short term, the pound / dollar may continue to feel under pressure.