Forecast: British consumer confidence to remain low

NEW YORK (Forex News Now) – Leading market research company GfK is due on Tuesday to publish key data on consumer confidence, in a major event affecting online FX trading.

The index, which is based on surveys of consumers, is expected to show a reading of -21, the same reading recorded one month ago. Any reading below 0 indicates pessimism.

The company is scheduled to release the report 12:01 A.M., GMT; as such the data is likely to dominate morning currency market trading.

However, the release of the report may be overshadowed later in the day by National Statistics of data on public sector net borrowing,

According to GBP/USD analysis, if the consumer confidence index shows more optimism than expected, it could lift the currency pair toward short-term resistance around Friday’s high of 1.5646.

But should the index show increased pessimism, GBP/USD could be pushed down toward short-term support levels around Friday’s low of 1.5454.