There are a lot of reason for this decision.
The main reason comes from . I see too many SELL signals I show on the chart.
The minor reason is that:
- The inconsistent of UK labor market could delay the rate hike decision of BOE. With the improve of jobless claim alongside decline in wage growth, BOE has to consider carefully before giving any further instruction.They emphasized in recent Minutes, they focus on wage growth and . This week, we saw an improvement in , and I think BOE would wait for more economic data especially from wage growth.
Moreover, recent days showed some positive signal from FED. Beige Book today indicated that US economic activities develop in all 12 Districts, and FED chairwoman Yellen had some suggest about first rate hike. She said in her Testimony that first rate hike would depend on labor market, and we saw that NFP report last weeks are always above 200k. This encourages investors to begin BUY USDollar to catch the strength of greenback.
Next week, the main focus relating to GBPUSD will be BOE Minutes. From now to that time, I think GBPUSD will correct to 1.7070
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