22.11.201715:08 Forex Analysis & Reviews: Global macro overview for 22/11/2017

The US Dollar's currency strength was slightly higher against the British Pound (-0.1 percent), which in yesterday's trade gained the unmatched component of the main currency basket. Just before noon, the GBP was under pressure from the Bank of England members who for a moment stopped the prospect of further strengthening. A series of interesting headlines began with Jon Cunliffe remaining skeptical about the power of price processes, as his forecasts clearly point to the inflationary outlook for the fourth quarter of 2017. Cunliffe is clearly concerned about the pace of remuneration in the coming quarters, which can not be said for Gertjanie Vlieghe expecting a wage jump to 3.0% y / y. Comments on the condition of the labor market are supplemented by Ian McCafferty's statement that the NAIRU's unemployment rate may be below 4.5%. Further comments by the BoE have been made by Michael Saunders, who is expecting a gradual and limited tightening in the absence of any promises of a rate hike.

Let's now take a look at the GBP/USD technical picture at the H4 time frame. The GBP was not impressed by the BoE members comments and did not move as much as market participants might have expected. The price still trades above the dashed black trend line, slightly above the technical support at the level of 1.3220. The key technical resistance for bulls is still the zone between the levels of 1.3321 - 1.3342, but a lack of the upward momentum makes it rather tough nut to crack now.