GBP/USD decreases after strong growth yesterday
Yesterday, the Bank of England meeting minutes were unexpectedly restrained, although investors have been waiting softer comments after the ECB's performance. The protocol emphasized that the most likely rate hike will be the next step of the Bank of England.
The US balance of payments for the 4th quarter is really disappointing. The negative balance for the previous period (Q3) was revised from -125 billion to -130 billion, for the 4th quarter amounted to -125 billion vs. -117 billion.
As we predicted yesterday, when the big investors will complete the redemption, we can see the strengthening of the US dollar. Speculative phase lasts an average of 3-5 days. We expect that the speculative phase ends, and therefore, we expect the consolidation of the pair GBP/USD in the range of 1,4510 - 1,4575.
How to trade
The level 1.4343 is a support level for GBP/USD. It is necessary for the pair to trade above it to continue growing. We expect some rollback of the pair to the level of 1.4430 during the day and we would buy CALL options when the price reaches that level.
Target price: 1.4430
Close price: 1.4461
Expiry time: 21:00 GMT