GBP/USD: consolidation ahead of the release of statistics from t
Current trend
The GBP/USD pair continues to consolidate around the 1.3550 mark as investors await the publication of US inflation data for January.
The speech of the chief economist of the Bank of England, Huw Pill, did not bring clarity to the bidders. The official only confirmed that the rate hike as a measure to combat inflation will continue. Further correction of the indicators is likely to be moderate (by 0.25%), since it is suitable for identifying a "neutral" rate level, at which it does not stimulate, but does not slow down economic development. Some support for the pound was provided by the intentions of the British government to cancel self-isolation for coronavirus patients from the end of February and switch from a quarantine ban strategy to a recommendation strategy.
American investors will pay special attention today to the publication of January data on the consumer price index, which may reach another record at 7.3% and influence the decision of the US Fed on the issue of monetary policy adjustments. So far, most officials of the department are inclined to gradually increase rates by 0.25%, which was confirmed the day before by the head of the Federal Reserve Bank of Cleveland, Loretta Mester, and the chairman of the Federal Reserve Bank of Atlanta, Rafael Bostic, however, a significant increase in prices may force them to act more decisively and increase the indicators by 0.50% and even by 0.75%.
Support and resistance
Now the price of the GBP/USD pair is trying to gain a foothold above 1.3550 (Murray , Fibo retracement 23.6%), but a serious increase will be possible if the asset leaves the descending channel, breaking through the level of 1.3610 (Murray ). At the same time, the targets of the upward dynamics will be 1.3732 (Murray ) and 1.3793 Murray (). If the level of 1.3488 (Murray ) breaks down, the decline may continue to 1.3366 (Murray ) and 1.3300 (Murray ). The indicators still do not give a single signal: the Bollinger Bands are horizontal, the MACD histogram is near the zero zone, its volumes are insignificant, and the Stochastic is directed downwards.
Resistance levels: 1.3610, 1.3732, 1.3793.
Support levels: 1.3488, 1.3366, 1.3300.
The GBP/USD pair continues to consolidate around the 1.3550 mark as investors await the publication of US inflation data for January.
The speech of the chief economist of the Bank of England, Huw Pill, did not bring clarity to the bidders. The official only confirmed that the rate hike as a measure to combat inflation will continue. Further correction of the indicators is likely to be moderate (by 0.25%), since it is suitable for identifying a "neutral" rate level, at which it does not stimulate, but does not slow down economic development. Some support for the pound was provided by the intentions of the British government to cancel self-isolation for coronavirus patients from the end of February and switch from a quarantine ban strategy to a recommendation strategy.
American investors will pay special attention today to the publication of January data on the consumer price index, which may reach another record at 7.3% and influence the decision of the US Fed on the issue of monetary policy adjustments. So far, most officials of the department are inclined to gradually increase rates by 0.25%, which was confirmed the day before by the head of the Federal Reserve Bank of Cleveland, Loretta Mester, and the chairman of the Federal Reserve Bank of Atlanta, Rafael Bostic, however, a significant increase in prices may force them to act more decisively and increase the indicators by 0.50% and even by 0.75%.
Support and resistance
Now the price of the GBP/USD pair is trying to gain a foothold above 1.3550 (Murray , Fibo retracement 23.6%), but a serious increase will be possible if the asset leaves the descending channel, breaking through the level of 1.3610 (Murray ). At the same time, the targets of the upward dynamics will be 1.3732 (Murray ) and 1.3793 Murray (). If the level of 1.3488 (Murray ) breaks down, the decline may continue to 1.3366 (Murray ) and 1.3300 (Murray ). The indicators still do not give a single signal: the Bollinger Bands are horizontal, the MACD histogram is near the zero zone, its volumes are insignificant, and the Stochastic is directed downwards.
Resistance levels: 1.3610, 1.3732, 1.3793.
Support levels: 1.3488, 1.3366, 1.3300.