The British currency continued to decline against the US dollar on Wednesday trading, the pair completed the day's session at 1.4028.The index of business activity in the services sector of Great Britain fell sharply to the level of 51.7 in March. Given that business activity in the construction sector has also declined, the growth of the UK economy may decline in the near future. It is unlikely that the decline will be strong enough to influence the decision of the Bank of England, which is likely to raise the interest rate at the next meeting in May. However, the British pound lost almost all the advantages and again dropped to a strong level of 1.4000 against the dollar.
If today's NFP data are stronger than expected, the pound/dollar will fall below the 1.4000 level. The further dynamics of the pound, as usual, will be determined by Brexit's news. In any case, the pound will receive support from the expected increase in May, so a drop significantly below 1.4000 is unlikely.
In my forecast for today, I assume a decrease in pound/dollar to support levels of 1.4010, 1.4000 and 1.3980.
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