Today is a rather important day for the GBP / USD pair, since inflation data is expected to be published in the UK, so for sure the trading today will take place depending on the published actual data. If the data comes out at the level of the forecast, then the market reaction will most likely be restrained. The data above the forecast figure may cause a very violent market reaction, since the growth of inflation expectations will indicate the need to raise interest rates from the Bank of England in the near future. In the case of weaker data, the pound may be under pressure, and we can see the beginning of the corrective movement in the GBP / USD pair.
Since other important data neither in the UK nor in the United States today is not expected the further course of trading will take place entirely under the influence of inflation data in the United Kingdom. Up to this point it is best to refrain from making any trading decisions.
We are now receiving signals on the beginning of the development of a correctional wave on the graph. The RSI indicator, having met the overbought pressure, began to decline along with the price. AO also turned down at its peak values, changing color from red to blue. The first goal and a serious test for bears should be the level 1.3730. Only if it succeeds in pushing through will it be possible to count on a further price reduction with a target of 1.3660. Although globally there is still priority in favor of further growth.
Review prepared by Fort Financial Services Research Department. Follow our publications!