what do you think about this channel?
The GBP/USD strengthened at the auction on Monday, completing the session on the outskirts of the key resistance level 1.3200.
As for the European currency, the main factor influencing the dynamics of the British pound movement remains the forthcoming meeting of the Bank of England and the possible beginning of a tightening of monetary policy. At the moment, the markets estimate the probability of an interest rate increase of 80%, which is higher than in similar matters in September.
The main reason for the rate hike remains the growing inflation in the UK, which may peak in October. Recall that the September index of the consumer price index for the first time in a long time reached a growth of 3%.
The political uncertainty associated with the Brexit talks continues to put pressure on the pound. The previous summit in Brussels did not bring significant changes, British Prime Minister Theresa May's statements were optimistic about reaching an agreement, while European leaders recognized that there was no progress in the negotiations.
The GBP/USD rate is expected to rise to resistance levels of 1.3230, 1.3250 and 1.3275.