Cable Breaks The Upward Channel Following BOE Inflation Report; More Weakness In View
USD is mixed across the board but we see in a strong shape against the pound after BoE forecasts that the inflation rate will fall below 1% within 6 months, and rise toward the 2% target by the end of the 3-year forecast period. The bank also cut the GDP forecast by 0.2% for both 2015 and 2016 (to 2.9% and 2.6%, respectively), and cited a weaker Europe, which was the reason for weaker GBPUSD as well as lower prices on FTSE100. Technically speaking we see cable breaking beneath the channel support line that confirms end of a three wave rally, therefore weakness is expected to resume towards the lows after any three wave rally. 1.5939 is now invalidation level; expect lower prices as long this high is in.
GBPUSD 1h Elliott Wave Analysis
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