According to its new accommodation policy, the US Fed Reserve is going to buy the treasuries to the sum of $600B.
The Fed Reserve reports that it is going to spend $75B every month to purchase the long-term treasury bonds. Such a measure may have a negative impact on the creditworthiness of the United States.
At the same time the Fed Reserves keeps devaluing USD.
In such a situation the British Pound currency rate at Forex is demonstrating positive dynamics.
Having broken through the high, the GBPUSD rate keeps on growing while developing short wave a (C ) /C.
Should the downward retracement come out of the MF Sloping Channel and break through the MF pivot at 1.6051, the wave started at 1.5961 will be completed. The pivot at 1.5961 is now defending the whole wave from 1.5651.
Today’s news (Nov 4th – GMT):
12:00 GBR – Bank of England Rate Decision
12:30 USA – Jobless claims, Nonfarm Productivity, Unit Labor Costs
12:45 EU – European Central Bank Rate Decision
13:30 EU – ECB Press Conference
Levels of Resistance and Support:
1.6364 – 138.2% + 176.4%
1.6307 – 161.8% + 161.8%
1.6226 – 123.6% + 138.2% + 200%
1.6183 – the current price
1.6108 – MF pivot
1.6051 – MF pivot
1.6000 – Oanda’s buy limits
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Text: Ivan Zhigalov, an expert of the Department of studying Masterforex-V trading system
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