FX.co ★ Trading plan for GBP / USD pair as of 05/10/2018

It seems that we have to wait for correction for a long time. Although in the UK, the growth rate of industrial production is expected to accelerate from 2.2% to 3.1%, much more important results of the meeting of the Board of the Bank of England. Literally a couple of days ago, it was assumed that the regulator would raise the refinancing rate from 0.5% to 0.75%, but the mood changed radically. The latest statements by the representatives of the Bank of England unequivocally suggest that the refinancing rate will remain unchanged so that the pound will clearly have no reason to grow. Moreover, this will be regarded as a weakness, and if we consider the expectation for the U.S. inflation to accelerate from 2.4% to 2.5%, the probability of a further decrease in the pound is high.

The GBP/USD currency pair has moved closer to the range of 1.3440 / 1.3480, felt the support, forming the result of the 1.3480 -1 .3590 area. It is possible to assume further swaying in the given framework, where, the quotation will probably take place.