GBP USD outlook
The pound is very willing to turn to the north after the correction. The pound completed the double bottom as expected at 1.3924, but the corrective pullback turned out to be deeper than I thought to 1.3977. Now again the recovery of the northern points, the first resistance level of 1.3907, I wait today, and higher already since the Asian session. Until the resistance trend line of the descending channel, the targets are at the levels of 1.3924 and 1.3937. The strength of bulls today is the successful vaccination in the UK.
Economists are also eagerly awaiting what they will say after this meeting. It should be noted right away that most do not expectany announcements of changes. Despite the fact that the flow of data since the last main meeting of the Bank of England in early February was unequivocally positive, the regulator can leave everything at least until the beginning of next year. But at the same time, a significant increase in the forecast for economic growth for this year can be expected. However, the recovery is still at its initial stage, and against this background, the Central Bank may indicate unreached targets for tightening policy, and if necessary, it can also weaken.
All other things being equal, there is a small fraction of the likelihood that the Bank of England will follow the Bank of Canada and become the second central bank to announce an early exit from emergency stimulus.
Technically, everything is the same : 1.3790 and1.4005 plays a decisive role. If we break through the lower border, then we will be dealing with a prolonged correction. Breakdown of 1.4005 will trigger a third wave of growth. So far, everything looks in favor of the bulls. Keep our fingers crossed.