The nearest support levels for the British currency are interesting for opening Buy positions, inasmuch as the Bank of England begins to prepare the market for the fact that it will be the first of the major Central Banks who raise interest rates after the “coronacrisis”. The unemployment rate in Britain fell to 4.5%, and the growth rate of wages is 7.2%. This situation can provoke a strong rise in inflation and, in order to keep the situation under control, the Bank of England can quickly curtail the quantitative easing program and move to tighten monetary policy through raising interest rates.

This week most officials of Bank of England said that they are actively discussing the date of the first rate hike. Rising rates will have a favorable influence on the value of the British currency, and investors can now buy up the pound on expectations of this event. As the well-known proverb goes: buy the rumor, sell the fact!

Trading recommendation: buy 1.3575/1.3545 and take profit 1.3655.