16, May 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

The British Pound continued to fall this week, GBP/USD fell to 1.5217, but we can see how sterling will consolidate before the Bank of England inflation report later this week, as market participants weigh the prospects for monetary policy.

As the Bank of England maintained its current policy, the updated forecast may instill an improved outlook for the UK and we can see a growing  number of central bank officials who are ready to close expansion of the balance as they see a slow but a steady recovery in the UK.

Indeed, the Bank of England may seem tougher this time as the UK has avoided the triple recession and we may see the GBP/USD recovery before the quarterly report to 1.5260.