The price of the British pound was consolidating above the strong level of 1.66 for more than a month, and yesterday has broken through this mark and now is trying to fix below it. The reasons for the low volatility were the data on stable growth of the economy and the lack of signals on possible changes in the monetary policy of the country. Today, we expect increased volatility due to the release of data on the labor market in the UK, which has a significant impact on subsequent decisions regarding the Bank of England interest rate and the amount of asset purchases. Moreover, the possible strengthening of the U.S. dollar on the background of the expected reduction in the quantitative easing program by 10 billion dollars to 55 billion dollars a month, can lead to lower prices of the British currency 1.65.
Despite this we maintain a long-term positive outlook for the British pound, and we expect that the price will continue to move inside the rising channel.
Wish you the profits!
FXFINPRO Capital Analytical department.