GBP: British Pound Sterling came to a halt in the range

At the Forex currency market the british Pound Sterling is going down on Monday; however the pair GBP/USD has been in the range of 1.5836-1.6010 for the third session already.

Forex forecast: MACD indicator is in the positive area for the pair GBP/USD and continues to go up, confirming a previous buy signal for the pair. Stochastic Oscillator started to go down on Monday, giving a pair sell signal.

Forex recommendations: off the market.

Feasible event scenario at Forex: in case of breakdown at the level of 1.6000 the pair  will go to1.6020 and to the local highs of 1.6050. If the level of 1.5950 is exceeded, traders’ targets will be the levels of 1.5900 and 1.5890.

Last Friday, representative of the Monetary Committee of the Bank of England Posen noted once again that the position of the regulator towards inflation has remained unchanged: The bank expects that inflationary pressure will reduce to the level of 2% soon and below, as fundamental factors, which take into account, for example, zero growth in base salary, give indications of this. We would remind that inflation in Great Britain amounted to 3.7% in December against the forecast of 3.4%. According to traders, it became evidence in favor of interest rate increase by the Bank of England. Market believes it is a settled matter because inflation has remained above target level of the regulator for 11 months. 

In addition Posen stressed that market’s opinion about the rise of the interest rate does not mean the actual rise of the interest rate in the nearest future.

We would remind that market believes that the issue of raising interest rate by the bank of England is only a matter of time.  Meetings of the regulator are scheduled for: 10 February, 10 March, 7 April, 5 May, 9 June, 7 July, 4 August, 8 September, 6 October, 10 November, 8 December.

Internal situation in the UK economy is still in favor of the GBP; medium term trend- is ascending for the pair GBP/USD.

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