Sterling Mixed ahead of BoE Quarterly Inflation Report
Sterling strengthens mildly against dollar but remains rather mixed elsewhere ahead of BoE Quarterly Inflation Report today. Recent economic data from UK, suggest that the worst in the economic downturn might be over. However, it's rather unlikely that the report will deliver a brighter tone just after BoE has extended its quantitative easing program last week. Markets opinion are quite divided on how BoE will revise growth and inflation projection data. And based on that, any revision could trigger strong volatility in the markets.
GBP/JPY Candlesticks and Ichimoku Analysis
Although the British pound rose marginally to 150.90 as expected, as sterling has retreated after faltering below indicated resistance at 151.53, suggesting initial consolidation below this level would take place and pullback to 144.96 (61.8% fibo. retracement of 139.03-150.90) is likely, however, renewed buying interest shall emerge around Tenkan-Sen (now at 143.24) and yield another upmove later. Break of 150.90 would signal the rise from 118.87 has resumed for re-test of 151.53, above there would bring retracement of medium term decline from 215.89 to 153.50, then 155.93, being 38.2% fibo. retracement of the fall from 215.89 to 118.87.
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