The Great Britain pound was steady against the dollar on Monday after the Bank of England kept monetary policy on hold at the conclusion of its two-day meeting, ahead of its quarterly inflation report on Wednesday.
The bank did not publish any rate statement, but investors were looking ahead to Wednesday’s quarterly inflation report which would outline its forecasts for growth and inflation.
Also the UK elections are now over. The outcome was really positive for the GBP. The conservative government which is seen as a very business-friendly government got in.
Intra-day bias remains bullish as 21 and 55 EMA is still crossed northward. SSRC oscillator indicator is also signalling bullish momentum is still in play. However the market seems to be overbought and buying the dips wont be a bad idea. Or better still wait for a decent break of 1.5611 resistance before confirming bullish resumption. Am expecting further rise to 1.5785 resistance in the medium term picture.
Tomorrow GBP Manufacturing Production would be closely watched.