2012-08-09 15:47:00
1. Current trend of the pair GBPUSD
Yesterday, quotes of the British Pound Sterling increased against the USD, reaching the highs of this month (1.5687). The rise in the Pound was triggered by the publication of the quarterly inflation report by the Bank of England. Recall that inflation in the UK reached record value last September and amounted to 5.2%, while the report showed decline to 2.4% in June. The Bank of England predicts that this tendency will continue in the short-term. However the Bank of England has concerns that inflationary pace may not slow down amid weak economic growth. If these fears will come true, monetary authorities of Great Britain will have limited chances to stimulate economy.
2. Important levels (Support and Resistance)
The key resistance level today is 1.5687; next target will be at the level of 1.5767. Support levels are: 1.5575 and 1.5505.
3. Best entry/exit points
The best entry point to enter market for buying transactions is the level of 1.5690 with protective order at the level of 1.5650. Entry point for the contracts for sale is 1.5565 with protective orders at the level of 1.5625.
4. Supporting facts
It is likely that the Pound will resume its fall in the medium-term because traders will be inclined to make investments in the Euro due to the statements made by the governor of ECB that everything possible will be made to support the Euro. Ongoing recession in the UK economy also has a negative impact on the British currency. GDP in the UK fell by 0.7% in Q2 2012 versus the index in Q1. This trend has lasted for the third quarter in a row; however the report showed in the reporting period the decline was the most significant since 2009.
Yesterday, quotes of the British Pound Sterling increased against the USD, reaching the highs of this month (1.5687). The rise in the Pound was triggered by the publication of the quarterly inflation report by the Bank of England. Recall that inflation in the UK reached record value last September and amounted to 5.2%, while the report showed decline to 2.4% in June. The Bank of England predicts that this tendency will continue in the short-term. However the Bank of England has concerns that inflationary pace may not slow down amid weak economic growth. If these fears will come true, monetary authorities of Great Britain will have limited chances to stimulate economy.
2. Important levels (Support and Resistance)
The key resistance level today is 1.5687; next target will be at the level of 1.5767. Support levels are: 1.5575 and 1.5505.
3. Best entry/exit points
The best entry point to enter market for buying transactions is the level of 1.5690 with protective order at the level of 1.5650. Entry point for the contracts for sale is 1.5565 with protective orders at the level of 1.5625.
4. Supporting facts
It is likely that the Pound will resume its fall in the medium-term because traders will be inclined to make investments in the Euro due to the statements made by the governor of ECB that everything possible will be made to support the Euro. Ongoing recession in the UK economy also has a negative impact on the British currency. GDP in the UK fell by 0.7% in Q2 2012 versus the index in Q1. This trend has lasted for the third quarter in a row; however the report showed in the reporting period the decline was the most significant since 2009.