The British Pound is posting a tepid advance in the European morning, following some comments from BOE's member Broadbent, who said that the Central Bank inflation forecast is not as relevant as economic behavior when it comes to determinate when to rise rates. The Pound plummeted a couple of weeks ago, when the Central Bank downgraded its growth and inflation forecast for the next 2 years, and investors decided to price in a no rate hike for the first half of 2016.
Ahead of the release of US housing data, and the latest FOMC meeting Minutes, the GBP/USD trades a few pips below the 50% retracement of its latest weekly decline and last week high at 1.5263, with the 4 hours chart supporting some additional gains, given that the technical indicators are heading higher around their mid-lines, and that the price has found support around the 38.2% retracement of the same rally and the 20 SMA, both converging around 1.5210.
The technical readings lack upward momentum, suggesting that additional gains beyond the mentioned resistance are required to see a steadier advance, up to 1.5320, the 61.8% retracement of the same rally, while further advances should see an extension up to 1.5360 during the upcoming sessions.
The immediate support stands at 1.5200, with a break below it exposing the 1.5150/60 price zone.
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