GBP/USD: 1.3632 on the cards

GBP/USD Current price: 1.3584

The GBP/USD pair traded as high as 1.3615 this Friday, with the Pound boosted for a second consecutive day by the BOE. After the Central Bank statement offered a surprise hawkish stance, indicating that a rate hike is more than likely for the upcoming months, and that policymakers are thinking on trimming QE, news hit the wires this Friday with MPC member Vlieghe, an usual dove, also jawboning on tightening. From Thursday's low, the pair added over 450 pips, and holds on to gains, although right below the 1.3600 level, ahead of Wall Street's opening and following soft US retail sales figures. The sharp advance seen this days have left intraday indicators in extreme overbought territory, with the RSI at 81 in the 4 hours chart and a 84 in the 1 hour one. Further gains seem unlikely, but an extension up to 1.3632, where the pair closed on June 24th 2016, after the market new Britons voted for a Brexit, is possible. Back to the 4 hours chart, technical indicators have lost upward strength, so far having turned flat, somehow anticipating some consolidation/a downward correction ahead, with a steeper correction expected on a break below 1.3530 the main support from here.

Support levels: 1.3530 1.3490 1.3445

Resistance levels: 1.3610 1.3635 1.3670

View Live Chart for the GBP/USD

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