FXstreet.com (Barcelona) - The Sterling is declining against the Dollar during the American session after capping its recovery from 1.6600 at 1.6745. Currently the pair is trading around 1.6675/85, 0.45% below today's opening price action at 1.6755.
According to the FastBrokers Research Team, the GBP/USD is declining following increasing trade deficit and the Dollar's strengthening: The Cable has pulled back from yesterday's highs after Britan's Trade Balance came in much weaker than expected (-7.2 bill. Vs -6.1 bill forecast). The Trade Balance number is a bit disappointing since it works against the recovery we've witnessed since January lows. Furthermore, the rising trade deficit is concerning considering the recent improvement in Britain's manufacturing production data.
FastBrokers concludes in the technical view: Technically speaking, the Cable faces topside technicals in the form of our 4th tier downtrend line, 11/09 highs, and the psychological 1.70 level. As for the downside, the GBP/USD still has several uptrend lines serving as technical cushions along with 11/06 lows and the psychological 1.65 level.