GBP/USD pair registered a sharp decline to six week low versus US dollar through the course of Friday trade session, after the release of strong US data. The positive signals encouraged expectations of a possible near-term exit of the FEDs stimulus program and sent US dollar up against most major currencies.
GBP/USD fell to 1.5160, lowest during session, then gained some ground and set around 1.5196-1.5200. Support levels were expected at 1.5034, April 4th low value, while the pair was to meet resistance at 1.5322, high from May 16th.
It was reported earlier, that consumers gained stronger expectations, concerning US economic development, as the Michigan Consumer Sentiment Index rose to 83.7 points during May from 76.4 during April. Forecasts suggested a slight increase to 77.9 points. It became clear, that these results were the strongest since July 2007. Data suggested consumers ignored the effects from federal expense cuts. Optimism was supported also by more expensive stocks and improving house market.
Additionally, experts from University of Michigan stated, that their inflationary expectations for this month remained at unchanged 3.1% level.
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