Sell on a level breakthrough of 1.4375 with 1.4300 target. Stop loss = 1.4425.
Reason for the trading strategy
Yesterday the Bank of England kept unchanged the monetary policy parameters, as expected. The decision was made unanimously by all the nine members of the Bank of England Monetary Policy Committee. The regulator downgraded the growth forecast for the UK GDP from 2.2% to 2% for 2016; from 2.4% to 2.3% for 2017; and from 2.5% to 2.3% for 2018. He believes that the likelihood of the country's exit from the EU has put downward pressure on economic growth. Therefore, in Q2 the UK GDP may increase by 0.3% rather than by 0.5% as expected.