Today the British Pound expects the Bank of England meeting
Despite the positive data from the labor market, which showed a sharp decline in the number of unemployed, GBP/USD continued to decline until the Fed meeting. The pair dropped to 1.4052, but then the positive UK data and soft Janet Yellen comments helped and sent it to 1.4244.
Fed meeting made it clear that the Fed is not ready for additional tightening in the coming months.
Investors hoped to hear more aggressive Fed comments on a back of the strong economic data on US inflation and the labor market. But Janet Yellen said that the economic forecast is not as good as it was in December.
Today the meeting of the Bank of England will be held. We'll hear the rate decisions and protocols of the meeting. Investors expect to see at least one vote "yes" during the voting for the rate cut. The US is to publish data on Philadelphia Fed Manufacturing Index for March, which is expected to improve from -2.8 to -1.7.
How to trade
However, we assume that the pair GBP/USD will continue to grow today to the level of 1.4360. We would buy call options, if the price overcomes the level 1.4270 up. When the operation of large investors to buy back currency will be completed, we will probably see the strengthening of the US dollar.
Target price: 1.4270
Close price: 1.4477
Expiry time: 21:00 GMT