BOE Chief Economist Pill: UK inflation remains too high. GBPUSD trades technical levels.

<p>BOEs chief economist Pill is on the wires saying:</p><ul><li>UK inflation remains too high</li><li>UK rate policy does remain restrictive</li><li>Sees more signs of slowing activity</li><li>Higher UK rates are hitting the supply side</li><li>BOE is still working to bring inflation down to 2%</li><li>We are going to see UK inflation for 2 more comparable levels with the rest of the world in pretty short order</li><li>We can't make promises about monetary policy outlook</li><li>We need to retain agility on monetary policy. </li><li>We still do not know economic implications of conflict in middle east</li><li>Causing demand constraint can be painful, but it is crucial to we get inflation back to target.</li><li>MPC feels it needs to keep rates restrictive at least for a while</li><li>It is premature to talk about cutting rates</li><li>Middle of next year does not seem totally unreasonable for considering rate stands.</li><li>As things change over those 9 months, we might need to reconsider monetary policy stance.</li><li>If we have restrictive policy for too long, we risk creating recession and pushing inflation below target.</li><li>Equilibrium interest rate is still probably positive.</li><li>Interest rates in the future will probably be higher than in the pre-Covid era.</li></ul><p>Looking at the GBPUSD on the 4-hour chart below,the high price for the day got within 7 pips of the 200 day MA at 1.2434. However, on the downside after hitting the high, the support near 1.23684 held (the low reach 1.2370). </p><p>Buyers and sellers are using the 1.2368 as support and the 200-day moving average 1.2434 as resistance.</p>

This article was written by Greg Michalowski at www.forexlive.com.