I hadn’t expected the pound to drop to the 67th degree. Traders were getting nervous before today’s inflation data from the UK. At 11:30, the UK is publishing its August CPI, PMI, RPI and its core output for the month.
For the past 13 hours the pair has been trading under the LB. In my forecast I’m expecting a growth in inflation. Yesterday’s spike is making me think about making a forecast for growth to 1.5485, then a return to the LB.
On Friday the day closed inside the bar and on Monday it closed outside. The price will shift in whichever direction the candle breaks.
On Monday the pound/dollar closed near the opening level of the Asian session. As such, the situation is still the same as that of Friday close.