Today the British pound was steady amid the EU’s decision to impose the levy on deposits. At the moment the levy is 6.75% of all deposits up to 100,000 euros and 9.9% above that cuts the euro-area’s bailout of Cyprus to 10 bln euros, down from an original figure of 17 bln euros. This decision should be adopted by Cyprus’s parliament. The vote is scheduled for today.

This week the data on UK Inflation, Bank of England Meeting Minutes, and UK Retail Sales in February is published. The expectations are positive. If the panic that was created by the situation with the deposits on Cyprus, the pound’s stability will be broken and a downward movement is expected. If everything settles down and Cyprus gets a 10 bln euros bailout, further pound’s growth is expected.

From the technical point of view, the trade is expected to be in the range 1.5068 to 1.5140. If the support is broken, then the way to the area of 1.5000, the low of March 4 and the low of December 29, 2011 opens (then 1.4923, the level of Fibonacci 61.8% on the H4). Consolidation of the price above 1.5140 enables the growth to the nearest target 1.5198, the high of March, 5.