Cable surges above 1.3500 on hawkish comments from previously most dovish MPC member

Slobodan Drvenica Windsor Brokers

GBPUSD

Sterling surged above target at 1.3473 and psychological 1.3500 barrier, hitting the highest levels since June 2016 after receiving fresh boost on hawkish comments from BoE MPC member Vlieghe.

Gertjan Vlieghe was previously seen as the most dovish member of the committee, but his today’s comments were seen as hawkish steer.

He said that the BoE might need to raise interest rates in the coming months, echoing Thursday’s comments from BoE. Vlieghe shifted his stance from further patience ahead of rate hike action to push for faster action of BoE in coming months.

British pound which already maintained strong bullish sentiment from yesterday’s BoE’s statement and extended rally to the levels last seen over two years ago.

Cable is on track for the second straight bullish weekly close, with close above weekly cloud to generate another strong bullish signal for extension towards next target at 1.3835 (29 Feb low/Fibo 61.8% of 1.5016/1.1930 descend).

Corrective actions on overbought studies could be anticipated in coming sessions.

Res: 1.3550; 1.3574; 1.3600; 1.3646
Sup: 1.3500; 1.3473; 1.3381; 1.3328

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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