GBP/USD analysis: BOE boosts Pound

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3391

The Pound outperformed all of its major rivals, rising up to 1.3403 against the greenback, its highest since early September 2016, holding nearby at the end of the US session, compliments to the BOE's monetary policy outcome. As largely expected, the Central Bank left rates unchanged at record lows of 0.25%, leaving also intact the APP. The surprise was within the Minutes, as the statement showed that policymakers believe that the market is under-pricing the possibility of a rate hike, while most MPC officials see a withdrawal of stimulus as “appropriate over the coming months.” The vote was 7-2 with Ian McCafferty and Michael Saunders voting for a 25bp hike, as in the previous meeting. The pair added over 250 pips from its daily low with the news, leaving intraday technical indicators within overbought territory, yet with the price near its highs, chances of a downward move in the near term are limited. In the 4 hours chart, indicators are losing strength and turning lower, but the price accelerated through the 20 SMA, now gaining bullish strength, well below the current level, supporting further gains ahead, with the market now eyeing 1.3445, September 2016 monthly high.

Support levels: 1.3355 1.3320 1.3275

Resistance levels: 1.3410 1.3445 1.3480

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Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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