Serj Panchuk
The inflation pressure in Great Britain is weakening. The recent PPI report showed a 1.7% increase (y/y), even though analysts had anticipated +2.0%.
July’s figures also turned out to be the lowest since October 2009. As for the month-over-month comparison, July’s report showed no changes.
In general, the tendency shown by the producer price index corresponds to the Bank of England’s expectations (they expected a increase under 2% in July).
Forex.
According to , the British Pound keeps strengthening against the US Dollar. The experts report that GBPUSD has suspended the move around 1.5702 but is still forming wave А(С)/С inside a bigger-scale upswing represented by wave А/В of level Daily.
The closest major levels of resistance are located at 1.5729, 1.5766 and 1.5731/34. The current bullish move will be completed as soon as the price overcomes the bottom of the MF sloping channel and consolidates below 1.5576. (as shown below).
Serj Panchuk
