GBP/USD: inflation data may influence the decision of the Bank o
Current trend
The British pound is trading in the area of record lows, updated last week. Investors are in no hurry to open new positions ahead of meetings of the world's leading regulators. Today the US Fed will hold a meeting, and a block of statistics from the UK on the dynamics of consumer and production prices for November will be released. From the American regulator, market participants expect acceleration in the pace of reduction of the quantitative easing program, which should provide moderate support to the dollar.
In turn, the European Central Bank and the Bank of England will hold their meetings tomorrow. The British regulator probably will not change the parameters of monetary policy, although not long ago analysts were confident in the growth of the interest rate. However, much will depend on inflation statistics that will appear today.
The UK data released yesterday was moderately optimistic. Claimant Count Change in November showed a decrease of 49.8K after a reduction of 14.9K in October. ILO Unemployment Rate in October expectedly decreased from 4.3% to 4.2%.
Support and resistance
In the D1 chart, Bollinger Bands are reversing horizontally. The price range is reducing from above, pointing to the development of multidirectional dynamics of trading in the short term. MACD indicator is growing, while preserving a rather stable buy signal (located above the signal line). Stochastic, having interrupted a steady growth at the beginning of the week, is reversing into a downward plane approximately in the center of its area.
Resistance levels: 1.3250, 1.3300, 1.3350, 1.3400.
Support levels: 1.3200, 1.3159, 1.3125, 1.3100.
The British pound is trading in the area of record lows, updated last week. Investors are in no hurry to open new positions ahead of meetings of the world's leading regulators. Today the US Fed will hold a meeting, and a block of statistics from the UK on the dynamics of consumer and production prices for November will be released. From the American regulator, market participants expect acceleration in the pace of reduction of the quantitative easing program, which should provide moderate support to the dollar.
In turn, the European Central Bank and the Bank of England will hold their meetings tomorrow. The British regulator probably will not change the parameters of monetary policy, although not long ago analysts were confident in the growth of the interest rate. However, much will depend on inflation statistics that will appear today.
The UK data released yesterday was moderately optimistic. Claimant Count Change in November showed a decrease of 49.8K after a reduction of 14.9K in October. ILO Unemployment Rate in October expectedly decreased from 4.3% to 4.2%.
Support and resistance
In the D1 chart, Bollinger Bands are reversing horizontally. The price range is reducing from above, pointing to the development of multidirectional dynamics of trading in the short term. MACD indicator is growing, while preserving a rather stable buy signal (located above the signal line). Stochastic, having interrupted a steady growth at the beginning of the week, is reversing into a downward plane approximately in the center of its area.
Resistance levels: 1.3250, 1.3300, 1.3350, 1.3400.
Support levels: 1.3200, 1.3159, 1.3125, 1.3100.
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