On Wednesday, the Pound/Dollar exchange rate rose to the resistance level of 1.3900. The pair has been trading with a moderate positive bias since the beginning of the week, while a steady movement is still expected for the 1.3900 mark. The results of the Fed meeting gave the quotes an impulse, which led the pound/dollar pair to a weekly high. The pound was supported by the downward trend in the number of coronavirus cases, and the comments of the chief epidemiologist of the UK, Neil Ferguson, that there may be only a few months before the end of the pandemic.
Quotes remain dependent on the dynamics of the dollar, as key macroeconomic data are not published in the UK this week. The Pound/Dollar exchange rate has come close to the upper limit of the trading range, where local peaks since the end of June remain the maximum. Against the background of the expected tightening of monetary policy in the United States and the preservation of current conditions by the Bank of England, the fall of the dollar against the British currency looks unexpected. Foreign exchange market analysts still believe that the difference in the approaches of the regulators of the two countries will ensure a decrease in demand for the pound. The Bank of England will undoubtedly come to tighten monetary policy a little later, but the current assessment still suggests a fall in the exchange rate.
In our forecast, we assume a decline in the Pound/Dollar exchange rate to the support levels of 1.3880, 1.3860 and 1.3830.