GBP/USD is an interesting pair to trade this week as the Bank of England monetary policy decision is scheduled for Thursday. In the last meeting the policymakers had showed concerns over rising inflation and slow pay growth and the effects on household spending and GDP. As the UK economy will remain in transition phase in terms of trade relations with Euro block and other major economies for months to come it will be a tough job for the BoE to balance the inflation along with sustained GDP growth.
I am expecting the GBP/USD to correct to the levels of 1.315 before the policy decision of BoE.
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