The British pound received support

The British currency appreciably strengthened against its main competitors after negative dynamics at the beginning of the week. The recovery of the pound was caused by the optimistic data on inflation in the UK.

• Thus, the consumer price index rose in November, thereby continuing to maintain an upward trend.

For more details about the statistics for the UK follow the Economic Calendar and the News feed.

Despite the growth of optimism about inflation and the possibility of further tightening of the monetary system of the Bank of England in 2018, the market’s attention remains confined to negotiations on Brexit and growing fears. These factors can limit the strengthening of the pound.

As a result, the pair GBP/USD gained appreciable support, but is limited by the existing downtrend and the restraint of the US currency. From the pair one should also expect a moderate move to resistance levels: 1.3440 and 1.3470, after fixing the price above 1.3380. Support is located at 1.3350-40.

Fig. GBP/USD. The current price is 1.3360.

Hanzenko Anton