GBPUSD Awaits The Bank of England Inflation Report For Action
Aayush Jindal
Key Highlights
British pound looks nervous ahead of an important release lined up later today.
Bank of England is scheduled to release inflation report during the London session today along with BOE’s Governor Mark Carney speech.
GBPUSD has a major support around 1.5180 and resistance ahead at 1.5300.
BOE Inflation ReportThere is a high volatility risk event lined up during the London session today, as the Bank of England will publish their inflation report. A large number of economists think that the central bank might revise down their inflation expectation considering the fact that the oil prices dropped heavily during the past several weeks. This might come as a relief for the central bank and as a result a little less dovish statement is possible this time. However, it depends a lot on how they think of present economic situation in the UK. One key thing to note that the British pound fell a lot recently against the US dollar, but at the same time gained a lot against the Euro.Furthermore, there is one more aspect which is the political risk coming up due to the general elections. This is another side which is needed to be considered by the central bank. Let us see what BOE Governor Mark Carney has to say about the inflation and present economic situation in the UK.Technical AnalysisThe British pound enjoyed a good time recently as it gained during the past couple of days against the US dollar and the Euro. The best of the lot was the EURGBP pair, which fell to a new seven year low. This shows the strength in the British pound. The GBPUSD also managed to climb higher recently after a rejection from the 1.5150-80 levels.There was a major bearish trend line formed on the 4 hour chart of the GBPUSD pair, which was breached recently. Moreover, the pair also settled above the 100 and 200 4-hour simple moving average, which is a positive sign in the near term. Currently, the pair is moving towards the 38.2% fib retracement level of the last leg from the 1.4950 low to 1.5349 high.UK RICS Housing Price BalanceEarlier today, the UK RICS Housing Price Balance survey was released by the Royal Institution of Chartered Surveyors. The outcome was on the lower side, as it registered a reading of 7% in January 2015, down from the previous revised reading of 12%.
There was a major bearish trend line formed on the 4 hour chart of the GBPUSD pair, which was breached recently. Moreover, the pair also settled above the 100 and 200 4-hour simple moving average, which is a positive sign in the near term. Currently, the pair is moving towards the 38.2% fib retracement level of the last leg from the 1.4950 low to 1.5349 high.UK RICS Housing Price BalanceEarlier today, the UK RICS Housing Price Balance survey was released by the Royal Institution of Chartered Surveyors. The outcome was on the lower side, as it registered a reading of 7% in January 2015, down from the previous revised reading of 12%.
There was a major bearish trend line formed on the 4 hour chart of the GBPUSD pair, which was breached recently. Moreover, the pair also settled above the 100 and 200 4-hour simple moving average, which is a positive sign in the near term. Currently, the pair is moving towards the 38.2% fib retracement level of the last leg from the 1.4950 low to 1.5349 high.UK RICS Housing Price BalanceEarlier today, the UK RICS Housing Price Balance survey was released by the Royal Institution of Chartered Surveyors. The outcome was on the lower side, as it registered a reading of 7% in January 2015, down from the previous revised reading of 12%.