20 October 09:11 AM
GBPUSD tested the optional level at 1.5650 while showing weakness. Then it stated a retracement towards the optional level at 1.5750. Dealers consider it to be an area of high interest in sales. If GBPUSD succeeds in overcoming the level there may be a recovery up to 1.5800. Under the negative scenario, the currency pair may fall below the optional level at 1.5600 with a chance of further decline. Analysts believe the decline of the major European currencies resulted from the fact that the Chinese authorities had increased the interest rate in order to “cool down” the “overheated” economy. Investors were afraid that the governments of other developing countries might take the same steps, so they started to buy up USD to diversify their risks.
Today’s key news event is the publication of Bank of England Minutes at 8.30GMT as it may affect the further movement of GBPUSD. Among other significant data included in the 8.30 news block are Public Sector Net Borrowing, which shows the difference between the income and spending of the British government and state-owned companies, and M4 Money Supply, which defines the value of the British Pound.
Based on the materials provided by the Department of options, Masterforex-V Academy.
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