GBP/USD broke the resistance line at 1.5370 and left dust behind it! I’m happy to say that I saw it coming. MPC Meeting Minutes, Retail Sales and Revised GDP are due in the next days, and positive figures could make it cross the next hurdles.
Yesterday, I wrote that the Pound should move forward on the important figures due this week. It had come earlier than expected. Read my post here: Will Retail Sales and GDP send the Pound higher?
A little after 6:30 GMT, the Pound made it’s move. In a matter of minutes, GBP/USD jumped about 150 pips, from 1.5350 to almost 1.55, leaving the 1.5370 line behind it. Cable now continues the march, and trades at 1.5507 at the time of writing.
This happened about 2 hours before the release of Consumer Price Index in Britain. CPI stands at 2.3% (0.1% less than expected), Core CPI at 1.5% (0.2% less than expected) and RPI at -1.2%, (0.1% less than expected).
So, prices are stable, and even lower than expected. We would expect the Pound to bounce back, right? But momentum is strong, and GBP/USD disregarded these figures.
Next in Britain – MPC Meeting Minutes
Tomorrow at 8:30 GMT, MPC Meeting Minutes are due: From yesterday’s post:
In their last meeting, the distinguished members decided to expand treasury buying, thus enlarging the Quantitative Easing program. This move weakened the British Pound. Why did they make this decision? What are the next moves? There will be some answers on Wednesday, and this will shake the Pound.
I’ll update later on the GBP/USD, as events unfold. Stay tuned.Get the 5 most predictable currency pairs