No important events are expected today.

The decline of quotations to the nearest support levels is advisable to use for opening Buy positions for two reasons. First, the Bank of England officials this week keep talking about the need to actively raise interest rates to combat high inflation. If in the spring the British monetary authorities tried to avoid questions about excessively high inflation, considering it a temporary problem, then in early summer the situation has changed. Apparently, the Central Bank realized that it is unreasonable to hope for the chance and the risks of stagflation, which is extremely difficult to deal with, can be realized in practice. Changes in the U.K. monetary regulator’s rhetoric are positive for the GBP’s strength as the U.S. Federal Reserve is not planning any further interest rate hikes.

Secondly, I expect oil prices to rise, which will also have a positive effect on the value of the British currency as assets are correlated with each other. Tonight, the U.S. Department of Energy will present fresh data on black gold reserves in U.S. storages and we can expect a decrease in the indicator, which is favorable for the price growth.

Recommendations: Buy 1.2400/1.2370 and TP 1.2487.