The Bank of England made an official statement: It is ready to keep stimulating the UK economy, with expanding the financial support for the country’s credit and financial institutions. According to Mervyn King, the main goal is to support the UK economy during another global economic slowdown.
This year is expected to be a tough one for the UK as it is time to pay the debts and shift the economy towards export and investments. Mervyn King expressed his concerns over the economic slowdown on India, China and Brazil and the prolonged eurozone crisis, saying that the British economy depends on the European and global economies.
In the meantime, GBPUSD keeps implementing the bullish scenario given in the outlook for Jan 25th 2012. According to the Department of Masterforex-V trading System, the price is currently forming wave А(С)/С inside a major upswing – wave A/B. The closest resistance is the MF pivot 1.5773.It is necessary to pay attention to the following Fibonacci levels: 1.5719, 1.5777, 1.5809, 1.5869. A break below the MF sloping channel and pivot 1.5531 will finish the rally.
