1.60 here we come by the looks of things as a very dovish set of minutes flies out of the Bank of England’s MPC meeting.
The 200 wma has seen some action of late and at 1.6012 is seeing some agian. There will be the usual support at 1.6000 but the stronger level isn’t until 1.5950
GBP/USD Daily chart 22 10 2014
Europe featured again in the headlines as well as the weakness in the global economy, the pound’s strength on exports and that a rate hike might leave the UK vulnerable to shocks, a choice few. This was mildly offset but comments that the record low rates might unbalance the recovery and that there’s a risk that wage growth might pick up sharply.
Inflation is going to be a big talking point and we don’t have to wait long for the BOE’s view as we have the quarterly inflation report next month. There might be a bit more left in the tank for those pushing rate hikes back and we should keep an eye on the downward channel bottom GBP/USD is in. Trade the edges until they break and confirm.
