Today in the UK the Bank of England is releasing a report on inflation where the current inflation figures will be announced as well as whether they reach the target levels. On the background of the recent increase of the base interest rate to 0.5%, we expect the Bank of England will continue to take measures to strengthen the national currency. However, due to political conflicts, including the protracted negotiations over the terms of Brexit, which still have a negative impact on the currency of the United Kingdom, we are watching the chart's sideways movement.
While studying the graph we can see that our pair found a resistance at the 1.3285 level and is now approaching it once again. However, technical indicators show us that the upward movement starts to lose momentum and may not reach this level.
At the moment, the Stochastic indicator shows a sell signal and the RSI points to decreasing highs.
In that case, we expect the medium-term downward movement in the channel, where the lowest boundary for us is the level of 1.3190. In case of breaking this level, a further passage of the price to the level of 1.3135 is expected.
