The US Dollar managed to strengthen against the British Pound, thereby making GBPUSD hit the 4-week low at 1,6545 after the BOE's Governor made his speech. Today. On March 19th, GBPUSD started the morning trading session with a slight increase (by 0,19%), which means the Pound managed to recover a bit against its American counterpart. The price is currently fluctuating somewhere around 1.6612.
Meanwhile, trades and investors are waiting for major economic reports form the UK and the USA, which are capable of affecting the currency exchange rate. Moreover, the Fed is about to announce its interest rate decision, which is likely to be followed by Janet Yellen's speech.
As for the BOE's Governor Mark Carney, he already made his speech yesterday. He touched upon several issues, including the reorganization of the UK's central bank under his supervision. Mr. Carney sees the reforms inside the Bank of England as his major goal as the Governor of the Bank of England. He says this is required to reinforce the British financial and banking system and make it more immune to future financial and economic shocks.
In his speech, Mr. Carney announced the start of a big-scale strategic plan aimed at creating a bank of the 21st century. This bank will be distinguished for its transparent policies. On top of that, the bank is said to be much quicker to react and adapt to economic changes, which is absolutely essential for efficient functioning.
Still, he says the bank will have to stick to the policy of low interest rates for some time in order to make sure that there is no risk of lower inflation pressure. He also welcomed China's decision to expand the Renminbi's intraday trade range to let its national currency be more volatile at times.
After Carney's speech, the US Dollar strengthened against the British Pound, thereby making GBPUSD decline down to 1.6545 – the lowest point since Feb 17th 2014.
Meanwhile, Masterforex-V Academy experts analyzed the situation in the market of GBPUSD (the H4 chart) to find out the near-term prospects of the currency pair and to define the possible scenarios for traders.
In particular, the experts say that the British Pound is consolidating vs the US Dollar within the scope of the 1,6544-1,6821 price range. After Carney's speech yesterday, the 1.6568 low was tested. Still, the price is currently above the level. This may testify to the strength of the existing long-term bullish trend shown by the British Pound.
At the same time, the highest price level since March 3rd 2010 (the red horizontal line on the chart) has recently been tested for a couple of times. Even though the price is currently below it, this is a major target for a future rally (if any).
If GBPUSD resumes the long-term rally, the red line is very likely to be broken to hit futher highs at 1,6821 or even higher.
Alternatively, if GBPUSD continues its way down to help the Dollar gain value against the Pound, we may well see the price falling down to the bottom of the MF sloping channel belonging to a bigger time frame and . In this case, the price may break below the bottom to touch 1,6252.
Сегодня, во время выхода макроэкономической статистики Великобритании на европейской сессии и объявления о процентной ставке в США, на американской сессии ожидается сильная волатильность курса доллара и фунта на Форекс.
