In line with revised targets for economic growth by the Bank of England paving the way for more stimulus measures, the British pound is set to gain opposite the US dollar in the currency exchanges today. The BOE reduced its forecast for annual GDP growth to about 2 percent in two years, which compares with an earlier projection of 2.5 percent last May. It also sees consumer-price growth at about 1.6 percent by then, below its 2 percent goal. With the Bank in a difficult position, more stimuli is likely to be announced soon, pushing the prospects for more purchases of the GBPUSD.

Earlier price action suggests that trades are apt to go extent the week’s bullish – albeit staggered – price movement. Price activity opened at 1.5655, eased just slightly to 1.5653, before eventually hiking to the price high of 1.5683. Price activity is projected to resume its climb in the ensuing trades and reach for higher price valuation past the 1.5678 upper psychological limit.

Looking at technical indicator activity in the 30-minute time frame, yesterday’s consolidation between the 1.5647 support and the 1.5663 resistance kept the candlesticks at bay, perched along the middle band of the Bollinger Bands(20). Nevertheless, the bullish price movement has now directed the upper tier to open outward to accommodate more purchase demand.

Also, the strides of the MACD(12,26,9) indicator are shown along the positive index. The histogram heads the slow MA above the neutral center in support of the upside bias. Considering these factors, trades are anticipated to go north for the Sterling-Dollar.