GBP/USD has a potential to continue growing.
At yesterday's meeting of the Bank of England, the monetary policy wasn’t changed. Only one member of the Monetary Policy Committee voted for the lowering of the rates. Most of the members of the committee believe that the conditions for lowering will be in August.
As a result, the pound gained 332 points, but finished the day with an advantage of 200 points. The trading volumes were high, that is, we can talk about the further growth.
It is worth to note that the UK is to publish data on CPI on Tuesday. We expect good data. On Thursday, the retail sales data may show a decline.
Today Mark Carney will speak in Toronto. Traders await he should confirm the intention to soften the policy in August.
The United States will present data on retail sales for June. The data is expected to increase by 0.1%, the core retail sales 0.4%. The consumer price index is expected to grow by 0.2%, and core CPI at 0.2%. The industrial production is projected to rise by 0.2%. The Michigan consumer sentiment is expected at 93.5.
How to trade
We would buy call options if the pair GBP/USD rises above 1.3460. We would buy put options if the pair descends below 1.3330.
Expiry time: 20:00 GMT