GBP/USD: bullish on BOE, 1.3400 up next

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3338

The Pound soared following a surprisingly hawkish BOE, with the GBP/USD pair reaching a fresh 2017 high of 1.3355 ahead of US data release. The Central Bank kept rates at record lows and the APP also unchanged, as largely expected, but the Minutes were a nice surprise for bulls, as among other things, policymakers said that the markets are under-pricing the possibility of a rate hike, and that the bank should begin unwinding its stimulus program "soon." Such comments were enough to boost the Pound, despite only 2 out of 9 members voted for a hike this time. The pair pulled back modestly after US inflation surprised to the upside, but as usual, good US news hardly affect the Pound when it's on the run. The pair holds on to gains ahead of Wall Street's opening and above previous yearly high, with a strong upward momentum according to technical readings, as in the 4 hours chart, technical indicators head north almost vertically, whilst the price has recovered sharply beyond its 20 SMA. Another leg higher beyond 1.3360, should see the pair extending its advance up to 1.3400 later today, where the pair should see some consolidation ahead of the next directional move.

Support levels: 1.3320 1.3285 1.3250

Resistance levels: 1.3360 1.3400 1.3440

View Live Chart for the GBP/USD

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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