The strong positions of the US dollar against the background of the increasing problems of the British economy are putting pressure on GBP/USD. The pair is trading just below the 1.1850 level.
Investors believe that record inflation of 10.1% should force the Bank of England to raise the interest rate. The next meeting of the regulator will be held on September 15. Judging by futures, market participants expect monetary restriction by 75 basis points from BA. The most aggressive "hawks" propose to raise the rate by 100 bps at once. At the same time, experts understand that the main driver of British inflation is an increase in energy prices, and here the Central Bank is unlikely to be able to do anything.
The US dollar index retreated from a high of 108.63, but remains above the level of 108.00. Investors missed yesterday's data on orders for durable goods, as the indicator has not changed since last month with a growth forecast of 90.6%. The housing market in the United States is falling, despite the growth in mortgage lending.
GBP/USD remains in the global descending channel. The Alligator averages and the awesome oscillator indicator retain sell signals.
Fixing the price below 1.1717 will return traders to short positions in the direction of 1.1452. We will place the stop loss at 1.1800.
If the pair grows above 1.1883, it is allowed to enter into purchases in small lots with the nearest target at 1.2219. Stop loss placement is 1.1750.