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A) Mr. Logan expects that British inflation will risesubstantially in the future. In previous years when the Britishinflation was high, the pound depreciated. The prevailing Britishinterest rate is slightly higher than the prevailing U.S. interestrate. The pound has risen slightly over each of the last severalmonths. Mr. Logan wants you to forecast the value of the pound foreach of the next 20 months. You explain to him that this willresult in an additional fee, but that your firm will explain howthe extra service would work?1. Explain how you can use technical forecasting to forecast thefuture value of the pound. Based on the information provided, doyou think that a technical forecast will predict futureappreciation or depreciation in the pound?2. Explain how you can use fundamental forecasting to forecastthe future value of the pound. Based on the information provided,do you think that a technical forecast will predict futureappreciation or depreciation in the pound?3. Explain how you can use market-based forecasting to forecastthe future value of the pound. Based on the information provided,do you think that a technical forecast will predict futureappreciation or depreciation in the pound?4. Does it appear that all of the forecasting techniques willlead to the same forecast of the pound’s future value? Whichtechnique would you prefer to use in this situation?