British pound was traded without changes during the day (~0 deviation in comparison to Monday), even though it got weaker at some point of the trading session. Rate went down after publication of the inflation rate that has slowed down to 1.6% in March, which is a minimum of last 4.5 years.
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Inflation level is located below the Bank of England's benchmark that is set up at 2%, which allows the regulator to keep a key rate on the extremely low level of 0.5%.
Click on the picture to see full-size
Inflation slowdown reduces a chance of the key interest rate to increase, which gives a negative signal for the British pound.
Situation on the futures market does not favor pound as well.
According to the report of the U.S. Commodity Futures Trading Commission (Commitments of Traders), hedgers’ net position (blue on the chart) continued to decrease and got to -62,900.00 contracts by the middle of last week. A significant decrease of the net position indicates that market participants are waiting for the pound’s decrease in the nearest future.
Click on the picture to see full-size
A relatively high net position of large speculators (green on the chart) also indicates a soon pound’s rate decrease.
Let’s check a technical overview of GBPUSD. Pair’s quotations are stuck at the resistance level of 1.67400. If bulls are able to breach it, then pound can continue growing.
Click on the picture to see full-size
However, a stochastic oscillator is in the “overbought” zone and should give a signal to sell very soon. Correction can start, if 1.67150 is breached down. Technical correction targets are located at 1.66900, 1.66700 and 1.66500.
EURGBP is traded near the important support level of 0.82500. If bulls are able to secure their positions at 0.82500, then the pair can keep growing. Key resistance level is located at 0.82650, 0.82800 and 0.83000.
Click on the picture to see full-size
If price gets below the level of 0.82500, then EURGBP can decrease to 0.82300 and 0.82150. - See more at: https://www.mayzus.com/economical-news/britains-inflation-level-has-dropped-to-the-lowest-level-in-4-years.html#sthash.GcdeizPK.dpuf
Click on the picture to see full-size
Inflation level is located below the Bank of England's benchmark that is set up at 2%, which allows the regulator to keep a key rate on the extremely low level of 0.5%.
Click on the picture to see full-size
Inflation slowdown reduces a chance of the key interest rate to increase, which gives a negative signal for the British pound.
Situation on the futures market does not favor pound as well.
According to the report of the U.S. Commodity Futures Trading Commission (Commitments of Traders), hedgers’ net position (blue on the chart) continued to decrease and got to -62,900.00 contracts by the middle of last week. A significant decrease of the net position indicates that market participants are waiting for the pound’s decrease in the nearest future.
Click on the picture to see full-size
A relatively high net position of large speculators (green on the chart) also indicates a soon pound’s rate decrease.
Let’s check a technical overview of GBPUSD. Pair’s quotations are stuck at the resistance level of 1.67400. If bulls are able to breach it, then pound can continue growing.
Click on the picture to see full-size
However, a stochastic oscillator is in the “overbought” zone and should give a signal to sell very soon. Correction can start, if 1.67150 is breached down. Technical correction targets are located at 1.66900, 1.66700 and 1.66500.
EURGBP is traded near the important support level of 0.82500. If bulls are able to secure their positions at 0.82500, then the pair can keep growing. Key resistance level is located at 0.82650, 0.82800 and 0.83000.
Click on the picture to see full-size
If price gets below the level of 0.82500, then EURGBP can decrease to 0.82300 and 0.82150. - See more at: https://www.mayzus.com/economical-news/britains-inflation-level-has-dropped-to-the-lowest-level-in-4-years.html#sthash.GcdeizPK.dpuf
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