GBP/USD is tentatively declining on Tuesday, retreating from the local highs of yesterday. The pair is trying to consolidate below 1.2150, but traders clearly lack drivers, and on the eve of the Bank of England meeting, investors prefer to stay out of the market.
Most likely, the Central Bank will leave the rate at 5.25%. But it will be known on November 2. Nevertheless, the regulator believes that the fight against inflation is not over yet and may well continue to tighten financial conditions. In September, the UK consumer price index showed 6.7% (y/y), and in services even increased from 6.8% to 6.9% (y/y).
Yesterday, UK consumer credit data was released showing a decline in volume from £1.681 billion to £1.391 billion in September.
There are no important news for the pair in the economic calendar today.
Technical analysis for GBP/USD for today
Bollinger Bands indicator on the chart of the daily formation is gradually moving to the horizontal plane. MACD indicator keeps growing, although it remains in the negative area. The Stochastic oscillator is confidently directed upwards. It is likely that on the Daily we observe the construction of the Rectangle pattern.
To form short positions we need to wait for the pair to consolidate below 1.2100. The nearest target is 1.2000. Stop-loss is set at 1.2150.
The pair's consolidation above 1.2200 will be a signal for entry into purchases with take profit at 1.2300. In this case the stop will also be placed at 1.2150