Last week the Bank of England reported about its decision to expand the QE program (bond purchases) by ₤50B. The experts of BNP Paribas assume this could be the last expansion. The BoE’s further intensions will clarify after the inflation report is published.
Positive changes in the UK and global economies will allow the MPC to slightly increase its inflation forecast.
According to BNP Paribas, if the forecast is changed to 1.8%, this will suggest higher probability of further QE expansion while 2.0% will remove the necessity of expanding the QE program.
GBPUSD keeps implementing the scenario given in the outlook for Feb 10th 2012. According to the Department of Masterforex-V Trading System , the currency pair is forming sub-wave C(C ) inside a long-term downswing (wave A/B). The closest levels of support are 1.5728, 1.5720,1.5705, 1.5693, 1.5662, 1.5651/48. The bearish wave will be completed once the price breaks above the MF sloping channel and pivot 1.5848. (as shown below):
