Yesterday the British pound dropped amid rumors pertaining to the Bank of England’s forecasts for growth and inflation. On February 13, the Bank of England will publish its quarterly survey. The pound lost 140 points. The data on inflation is issued today at 13:30 GMT+4.
Producer Price index in January is expected to be 0.9% against -0.2% in December; PPI Output is forecast to be 0.2% against -0.1%.
Consumer Price Index Core in January on an annual basis is expected to be flat, 2.4%; Retail price index is forecast to rise from 3.2% to 3.1% y-o-y. House-Price Index is expected to be flat.
From the technical point of view the fact that the price is in the wide uptrend of Fibonacci channel on the H4 may consider to be false as the price reversed fast under the previous line and under the lines of indicator and is at the level of Fibonacci 123.6% at the moment. Continuation of falling to the support of Fibonacci channel 1.5597 is expected; it is rather close to the support of trendline on the daily chart 1.5603. Then descending movement to the level of Fibonacci 161.8% on the H4 1.5574 is possible.
