The British strengthens its position. Accounting rate of the Bank of England

As expected, the Bank of England retained its key interest rate unchanged at 0.50%, after which the British pound consolidated its positions across the entire spectrum of the market. The pound was supported by the forecast of GDP growth, which in the next three years will be 1.8%. It was also noted that the Bank of England will seek to reduce the rate of inflation at a faster rate than expected in November. It is forecasted that the growth of wages in 2018 will exceed the growth of prices. These Bank of England forecasts suggest that the discount rate can be increased at a faster rate than previously expected.

Technical analysis: The pair GBP/USD rose sharply reaching 1.4011, which is in the region of 38.2 Fibonacci level at H1. Preservation of the price below the level of 38.2 Fibonacci, will speak of maintaining a downtrend in the short term.

Key recommendations: If the price of the instrument is able to gain a foothold above 1.4010, this will indicate a possible trend reversal in the short term, against which one should expect further growth of the pair to 1.4055, 1.4100.0. Decisions on trade should be made only after the publication of the details of the speech of the Chairman of the Bank of England Carney.

Fig. GBP/USD. The current price is $ 1.3955.

Alexander Sivtsov