WEEKLY FORCAST FOR GBP/USD WHICH SUFFERS TRADE WARS

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GBP/USD continued struggling with a hard time. Brexit, Carney influenced it. Now What’s next? The EU Summit on Brexit and final GDP are the center of attraction. Forex Singapore

A compromise had reached by the UK government, managed to overcome yet another vote in parliament on the Brexit bill, but this is not necessarily a good thing, as chances for a hard Brexit are still real. US President Trump rattled markets with yet another contemplation of slapping further tariffs on China. The pound was carried along to lower ground. Here are the key event for GBP/USD. 

• High Street Lending: On Tuesday, 8:30, The official mortgage figures leads over the measure of lending reflects around two-thirds of mortgages. In April, they reported a level of 38K, up from the previous month.
• CBI Realized Sales:  The Confederation of British Industry provided a positive surprise in May with an upbeat score of 11. Another small increase could be seen for June Tuesday, 10:00.

EU Summit:  Leaders of the European Union meet to discuss various topics and Brexit tops the agenda on Thursday and Friday. By this meeting, the EU and the UK were expected to reach agreements on the main topics of the Irish border and the Customs Union and it seems nothing will be achieved.  Daily Forex Signals  There is a high likelihood that can be kicked down the road to the next EU Summit in October, where everything will need to be discussed ahead of March 29th, 2019, Brexit day. The British Pound will likely remain pressured but a failure to agree on anything may weigh on broader markets as well. In additions, the EU Summit will likely include a discussion on the trade spat with the US.

• GfK Consumer Confidence: On the middle day of the week. The 2000 strong survey showed a slight improvement in consumer sentiment back in May, up to -7 points. The negative figure still reflects gloomily among consumers. 
• Final GDP: Friday, 8:30. The British economy suffered a significant slop down in the first quarter of the year. It grew by only 0.1% q/q and 1.2% y/y according to the first and second reads. The final release will likely repeat the same figures. The second quarter already looks more promising.
• Current Account: Friday, 8:30. Britain had a current account deficit of 18.4 billion pounds in the last quarter of 2017. A deficit is likely also for Q1 2018 and it may have widened.
• Net Lending to Individuals: On Friday, 8:30. More lending means more economic activity. Net lending stood at 5.7 billion pounds in April, better than had been expected. Another positive month is likely.
• M4 Money Supply:  In April Friday, 8:30. The amount of money in circulation grew by 0.2%, above expectations and after two months of drops. Another modest rise could be seen for May.
• Mortgage Approvals: Contrary to the High Street figure, the overall number of mortgages decreased to 62K in April Friday, 8:30.  Forex Trading Picks

GBP/USD Technical analysis: Pound/dollar fell below 1.3205, reaching new lows.

Technical lines from top to bottom:

1.3780 was a line of support in March and 1.3710 was the lowest point since early in the year.

Below, 1.3615 capped the pair in late 2017. 1.3470 was a swing high in early June.

The round number of 1.34 could provide further support. Further down, 1.33, which supported the pair in December.

1.3250 was a swing low in early June. 1.3205 was the low point in late May and 1.3080 served as support back in November 2017. The ultimate line is 1.3000.