On Wednesday GBP/USD is trading multidirectional around 1.2450.
Buyers get support only on technical factors while the fundamental background is still negative against sterling.
British business activity indices came out the day before. Manufacturing PMI showed a decline from 47.8 to 46.9 and services PMI from 55.9 to 55.1 p. Today the UK is analyzing the April inflation report. On an annualized basis, the figure slowed from 10.1% to 8.7% with a forecast of 8.3%, and on a monthly basis it rose from 0.8% to 1.2%. Core inflation rose from 6.2% to 6.8% (YoY). The consumer price index declined slightly.
During the day the head of the Bank of England will give a speech.
The U.K. National Bureau of Statistics said the public debt is at a record high of £2.54 trillion or 99.2% of GDP. The debt has been growing lately because of the financial aid to the population. The British government has said it will cut back on spending in the near future.
Technical analysis for GBP/USD
Bollinger Band indicator is moderately declining daily. MACD indicator has crossed the zero line from the top down. Stochastic Oscillator, on the contrary, is moderately growing and has already left the oversold zone.
In case the pair gets above 1.2450, we open long positions with Take Profit at 1.2550. Stop-loss is set at 1.2390.
In case of fixation of the quotation below 1.2390 selling with the target of 1.2283 will be actual. Placement of a stop-loss - 1.2450.