The British pound rose by 34 points on Tuesday, mainly due to the general weakening of the dollar, as the speech of the Bank of England’s head was restrained and alarming – he spoke about the dangers of Brexit without a deal, about the adequacy of only moderate monetary policy adjustments in the medium term. In addition, investors were not in a hurry to anticipate events ahead of today’s inflation data, as forecasts suggest a slight decrease; The base consumer price index for January is expected to remain unchanged, 1.9% y/y, the overall CPI may drop from 2.1% y/y to 1.9% y/y, retail prices are expected to decrease from 2.7% y/y to 2.6% y/y, housing prices may weaken in growth from 2.8% y/y to 2.6% y/y.
But today has opened above the Krusenstern trend line on the daily chart when the Marlin oscillator signal line reaches the growth zone (above zero) on a smaller, four-hour chart, and even if the expectations for the British indicators are met, investors can bring the price to the comfortable consolidation zone of 1.2930/75, where they reposition trade transactions.
We are waiting for the completion of the consolidation and in the coming days, the resumption of the decline of the British pound.
The material has been provided by InstaForex Company – www.instaforex.com