The recent correction of the British pound against the US dollar could probably be a good opportunity for me to go long on the GBPUSD.

The GBP USD jumped overnight on renewed talk of an interest rate hike by the Bank of England. Traders reacted positively to the news that the Office for National Statistics reported a rise in consumer inflation more than double the Bank of England’s 2% target. The actual report showed that inflation rose at a 4.4% annual pace in February, up from 4% in January.

The GBP USD continued to trade inside of the September 30 outside range day at 1.5922 to 1.5668. This pattern has temporarily frozen the trade as traders await the latest monetary policy statement from the Bank of England on October 7. A pair of Gann angles is also forming a triangle between 1.5895 and 1.5676. This formation is also helping to confine trading activity.

Welcome to another week of forex trading! In today’s FX feature is an update of the GBPUSD pair which I posted back on August 4 (please see my previous blog here). As you can see from its 4-hour chart, the GBPUSD or the Cable has retraced downwards after reaching a 6-month high of 1.5998 on August 4. But despite its recent weakness, I am still bullish on the British pound.