Negative dynamics of the credit market | 19 June 2020

GBPUSD trading plan:

The Bank of England held rates steady at historic lows of 0.1% and ramped up its bond purchases by £100 billion, as expected. The central bank said it stands "ready to take further action as necessary" to support the economy and boost inflation to its 2% target. The LIBOR rates on U.S. dollar loans are rising in the London interbank market, while interest rates on loans are falling in British currency. The interest rate on a three-month loan in U.S. currency in London is 0.316%. This rate was 1.1 basis points higher a week ago. This is a negative signal for the British currency!

Trading recommendation: Sell 1.2470 and take profit 1.2435.