Forex Outlook: British Pound Upbeat On Expected Economic Growth

The pound advanced against other major currencies, with the expectations of growth in the economy after a strong first quarter. Analysts estimate a 3 % economic growth this year, which was above the level of the previous estimate of 2.6 %. Similarly, the projected growth for 2015 was hiked to 2.7 % from the previous prediction of 2.5 %.

The Bank of England's quarterly inflation report and Governor Mark Carney press conference scheduled later in this week are keenly watched by traders for any evidence of change in interest rates. The central bank is expected by economists to raise interest rates before U.K.'s national elections, in early 2015.

Against the euro, the pound advanced to 0.8145 for the first time since January 2013, making an increase of 0.2 % compared to last week's closing quote of 0.8165. Resistance might be encountered by the pound around the 0.805 zone.

Against the yen, the pound advanced making a session's high of 172.30. The pound might face the next possible resistance at the 173.6 zone.Against the dollar, the pound stretched to a high at 1.6896. Speculation for the pound is that it might find a resistance level at 1.70 zone, if the bullish trend continues.

Forex Outlook: Euro Slides Down Against The Pound

The euro fell down against the British Pound and traded at 0.8231 with a 0.04% loss for the day. On April 23, the pair traded between 0.8202-0.8246 and consolidated at 0.8233. The IFO Business Climate Index published by the Ifo Institute for Economic Research is expected to release its reading on Germany, the largest economy in the euro zone, today at 08:00 GMT. The index is predicted to give a lower reading of 110.4 in April compared to 110.7 in March.

The euro will gather more positive sentiment, if the reading falls on higher than expected level.
In another part of the world, the Confederation of British Industry is expected to release the results from its monthly CBI distributive survey at 10:00 GMT today. 

The index is predicted to give a higher reading of 17 in April compared to 13th in March 2014. Reflecting the short-term trends in UK retail and wholesale sectors, this indicator will be an important aspect of the formulation of the economic policy by the Bank of England and the government.

If the reading turns out to be more than expected, the pound will gain more appeal.

Technical view

EUR/GBP manages to breach the first resistance level at 0.8252, it maybe continue up to test 0.8271. In case the second key resistance is broken, the pair will probably effort to advance to 0.8296.