Unfortunately, economic problems of England keep increasing. Despite the fact that they decided to leave the Eurozone, economic situation in the country is getting worse and worse – the refinance rate was cut recently and Consumer Price Index remain on a very low level
..and most likely market participants should not expect it to increase, cause retail sales data (which has a massive impact on CPI) is rapidly decreasing:
What is more, there were some rumours that there might be yet another referendum in Scotland about leaving the United Kingdom. This is due to the fact that after the “Brexit” referendum economy of UK is suffering much more heavily than it was expected at the very beginning and it had a negative impact on the economy of Scotland as well. There already was a referendum about leaving the UK in Scotland back in 2014, but back then England was still a member of European Union.
Now traders will pay extra attention on the UK preliminary GDP report:
If the actual data is worse than expected it will have a negative impact on British Pound.
After a massive British Pound downfall on 7th of October traders are discussing about “will there be a parity between Euro and British Pound?”. After a massive rate movements on the price chart many traders tend to avoid risks and do not open high-volume short positions.
But after such a massive upward rate movement there is price correction on EURGBP D1 chart and the rate is near the bottom line of Bollinger Bands indicator while according to the indicator of technical analysis Stochastic the rate is in the oversold area and that is why a new upward trend is possible.