{"id":107754,"date":"2017-06-20T07:55:35","date_gmt":"2017-06-20T11:55:35","guid":{"rendered":"http:\/\/countingpips.com\/?p=107754"},"modified":"2017-06-20T07:16:12","modified_gmt":"2017-06-20T11:16:12","slug":"gbpusd-forex-technical-analysis-rising-inflation-supports-british-pound","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/06\/gbpusd-forex-technical-analysis-rising-inflation-supports-british-pound\/","title":{"rendered":"GBPUSD: Forex Technical Analysis – Rising inflation supports British Pound"},"content":{"rendered":"
June 20, 2017<\/div>
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By IFCMarkets<\/a><\/p>\n

Rising inflation supports British Pound<\/strong><\/p>\n

UK inflation hit 2.9% in May, and Bank of England left rates unchanged. But three members voted for rate hike against one vote for a hike in May. Will the British Pound<\/a> continue strengthening?<\/p>\n

The Bank of England left its key interest rate at 0.25%, leaving unchanged also the size of its asset purchase program at \u00a3435 billion at its meeting last Thursday. Monetary Policy Committee decision was widely anticipated but the 5-to-3 vote showed two more BOE members voted for a rate hike after just one vote for a raise in May. The reason for unexpected hawkish stance of MPC members was the upbeat inflation report: consumer prices continued rising in May, gaining 2.9% on year following 2.7% advance in April. The increase in MPC\u2019s hawkish tilt indicates concern over rising inflation as unemployment remains low at 4.6%, pointing to likely shift to monetary tightening sooner than previously believed in case inflation levels above the central bank\u2019s target rate are sustained.<\/p>\n

\"GBPUSD\"<\/p>\n

On the daily chart the GBPUSD: D1<\/b> is testing the 200-day moving average MA(200).<\/p>\n