FX.co ★ GBP/USD. Forcast for March 19, 2013

Today at 13:30 GMT+4 data on Inflation in UK in February is published. PPI Input is forecast to be 1.6% vs. 1.3% in January, PPI Output is expected to be 0.3% vs. 0.2%, Consumer Price Index (y-o-y) is expected to be 2.8% against 2.7%, Core Consumer Price Index (y-o-y) is expected 2.2% against 2.3%. Retail Price Index will remain at 3.3%. House prices are expected to go downward 2.6% vs. 3.3%. On the whole, UK inflation is accelerating. If US Building Permits and US Housing Starts figures are strong, then the pound continues growing.

From the technical point of view, after the price overcomes the Fibonacci extensions and Fibonacci level of 200% on the H4 (1.5134), the growth continues. The first target is 1.5198 (361.8% of Fibonacci), then price range 1.5226/39 (261.8% - 271%), which coincides with the resistance of trendline on the daily chart (1.5228). The next targets are 1.5288-1.5305, the levels of Fibonacci on the H4.