Today is Sun, November 19, 2017 0:18:05 GMT
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Forex Chart of the Day Pound (GBP)To Fall Further This Week?

The British pound has been in a downtrend since it broke last week’s support at 1.5875 and looks like it could fall further as it has taken out most of the remaining support levels on its way to retracing October’s lows.

One of the potential headwinds to the Pound’s ascent may be the release of  Wednesday’s BOE rate policy meeting meetings which are expected to show a dovish bias a call for additional monetary easing through further asset puchases despite the fact that not only did they already increase their purchases, but inflation is sitting at 5%, well outside of their target range.

I suppose the hope is that inflation will encourage economic activity but in the end it will likely hamper it.   Nevertheless with a dovish bias and the risk inherent in the markets from both the Euro and US debt crises, we could see GBP/USD back to 1.55 in no time with a potential to reach 1.535.