The currency pair declined last week and tested the ascending trend line. GBP/USD has managed to break down the support at 1,3232. The currency pair is still “uncertain” because of Brexit.
The main event of the last week was the BoA meeting. The MPC has not made any change in monetary policy, but Mark Carney has mentioned that the Bank of England will have to hike rates if the economic growth meets the forecasts.
There were also some other important releases. Unemployment rate declined to 3,9% and the wages increased to 3,4%. UK CPI increased to 1,9%.
British Pound looks more stable than Euro as it is supported by strong UK economic data and the possibilities of Brexit delay, which will allow the Prime Minister to make other attempts to persuade the Parliament.
We advise to wait for the signals to appear before taking any further actions. Key level is 1,3232. If GBP/USD breaks it out, the currency pair is likely to develop its growth towards 1,3591. Otherwise, you can sell aiming 1,2677. However, this second scenario is less probable currently.
The main event of the last week was the BoA meeting. The MPC has not made any change in monetary policy, but Mark Carney has mentioned that the Bank of England will have to hike rates if the economic growth meets the forecasts.
There were also some other important releases. Unemployment rate declined to 3,9% and the wages increased to 3,4%. UK CPI increased to 1,9%.
British Pound looks more stable than Euro as it is supported by strong UK economic data and the possibilities of Brexit delay, which will allow the Prime Minister to make other attempts to persuade the Parliament.
We advise to wait for the signals to appear before taking any further actions. Key level is 1,3232. If GBP/USD breaks it out, the currency pair is likely to develop its growth towards 1,3591. Otherwise, you can sell aiming 1,2677. However, this second scenario is less probable currently.