GBP/USD (a 4-hour chart)
Though the Bank of England is under pressure people expect from it more decisive action to continue stimulation of the economy by means of the program of "quantitative easing» (QE).
Market analysts also expect that after the last Thursday meeting the bank will increase asset purchases from 375 to 400 billion pounds. This scenario is likely to happen as we know three members of the Monetary Policy Committee of the Bank, including the chairman Mervyn King, voted to expand the program QE.
Other committee members insist that cheap pound promotes exports and, therefore, growth of the economy. On the other hand, the weakening of the pound may lead the inflation which has a negative impact on the welfare of ordinary Britons, whose incomes, according to recent studies remain at the level of ten years ago.
And so, the committee members were in a difficult situation, after Moody's agency reduced Britain credit rating that caused the pound falling below 1.5 for the first time in two years.