12, March 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

UK Chancellor Osborne is going to give more powers to the next head of the Central Bank Mr. Kearney, making the opportunity for new measures to soft the Bank of England monetary policy.

Osborne will announce his budget message March 20 to strengthen the "fiscal conservatism and monetary activism".

We advise to sell below 1.4980 (1st intermediate resistance) with the target 1.4855 (1st support) and 1.4835 (lower limit of time downlink).

Alternative scenario: The upside breakout level 1.4980 will open the way to 1.5015 (1st resistance, the upper limit of the downward channel) and 1.5050 (2nd intermediate resistance).

RSI is bearish and indicates a continued fall.

GBP/USD closes at the lows of mid-2010, reaching minimum 1.4887, and then minimum of July 2010 1.4878.