The Bank of England, during its meeting on monetary policy, said that soon it should begin to steadily reduce stimulus measures, inasmuch as the UK economy has entered a trajectory of sustainable growth. This is a positive signal for the pound! The bulls will be additionally supported by the growth of surplus of dollar liquidity in the Financial system.

The Fed continues to print money on a daily basis, which increases the surplus of dollars in the banking system. The bankers have accumulated a substantial amount of dollars on their balance sheets. For example, this week, as part of reverse REPO operations, banks placed just over $1.2 trillion in accounts with the Fed.

Trading recommendation: Buy 1.3710/1.3680 and take profit 1.3800.