NOVEMBER 2016 Forecasts of GBP/USD Market

After the rapid decline which occurred in Sterling, England Central Bank Governor Carney said that they couldn't ignore the weakness in the currency. Carney stressed that they are independent when conducting monetary policy, so they will evaluate the latest developments on the currency in the meeting held in next week. The sharp depreciation in the Sterling is causing a higher inflation rate more than expected with increasing import price index. On the other hand, increasing uncertainty and Brexit parliamentary debates are the main reasons for the weakness in the Sterling. Carney in his speech, due to all these developments, the government's exchange rate intervention by the Central Bank could raise borrowing costs, warning that gave a place to damaging.

Technical Side of GBP / USD Market

At the last days, the parity is continuing about 1.2100 level. 1.2100 – 1.2000 levels will be the important support levels for the GBP / USD market. If the market manages to stay over 1.2200 level , it may try 1.2400 level as a resistance point.