Traders and investors are getting increasingly concerned that the Bank of England may start tightening its monetary policy in the near future. Lower unemployment, along with a stronger housing market and more optimistic economic forecast for the British economy coming from local and foreing experts give us to understand that the BoE may well raise interest rates in the near future. Apparently, this fact provides the British Pound with extra support.
According to Rightmove Plc, a UK housing market operator, the average price of housing units increased by 1% earlier this month. Still, this month’s growth has definitely failed to make up for December’s decline equal to 1,9%. As for the annual increase, the prices gained 6,3% y/y. This is the biggest growth since 2007. Market participants seem reassured about higher prices.
Meanwhile, Scotiabank and ABN Armo Bank NV expect positive economic tendencies in the UK this year. They say this may well lead to monetary tightening.
According to Masterforex-V Academy, the British Pound keeps strengthening against the US Dollar. The experts report that GBPUSD is forming wave А(С)/С inside a bigger-scale upswing represented by wave А/В of level H8.
A further rally will probably encounter resistance around 1.6516 and the 1.6600 high. The current bullish move will be completed as soon as the price overcomes the bottom of the MF sloping channel and consolidates below 1.6399 (as shown below).
