The fall of the pound does not end. It’s now 1.50 $ against 1.6350 $ in the beginning of the year, currency British no longer interest traders. England no longer offers growth as interest rates are at 0.5%. The BoE may even increase its program of asset purchases to boost growth and thus to bear its currency in parallel to improve the competitiveness of its exporters.
Few arguments to advance
The British Pound collapses against the U.S. dollar for several weeks. It turns out that the lack of growth added to yield unattractive for those who carry trade, and forecasts are for a reinforcement of its quantitative easing; do not go in favor of parity progression.
The BoE will announce its interest rate expected 0.5%. It will also reveal its game in terms of asset purchases program which is currently 375 billion pounds. A reinforcement of its relaxation or lower rates would result to dive a little more English currency, which ultimately would not be a bad news for exporters seeking competitiveness.
Meanwhile, the GBP / USD now flirting with the 1.05 threshold already tested there two sessions. In short data (UT4H), we monitor the behavior of the cable after the appointment. The rupture of 1.4986 favors the establishment of a new wave of downward that materialize also exit from the bottom of a horizontal consolidation phase. The most active place themselves under 1.4970 to aim 1.48 at first. A stop 20 pips from entry points will be essential.
Be placed along a challenge. We Emphasis the opening of a long position on 1.5222 crossings than seeking the lowest point, and we monitor the resistance of 1.5222 over the coming sessions.