It was early Asian opening when BOE’s governor Carney at the Mansion House speech, rocked the markets with his statement that a UK rate hike “could happen sooner than markets currently expect”: thin volumes did the rest and the GBP soared against all of its rivals. Is not that the news was a shock, as fundamental data has been steadily showing signs of growth, but the confirmation coming from the BOE’s head what triggered the run to price it in.
Nevertheless, the GBP/USD advanced steadily in Asia, and continues now in Europe, reaching so far 1.6991, a couple pips below this year high. The wide, sudden move has left technical readings in extreme overbought territory in the 4 hours chart, now looking a bit exhausted to the upside but far from suggesting a reversal. Consolidating near the highs, immediate support now comes around 1.6950, and as long as above it the upside remains favored, with a break above 1.7000 triggering a quick spike up to 1.7040, August 2009 monthly high. Further gains will find next short term resistance at 1.7090, albeit 1.7220 price zone comes into play.
A reversal below 1.6950 mentioned support may see the pair falling down to 1.6920, although buyers would likely surge around it and contain the downside, at least today.
View Live Chart for GBP/USD
Nevertheless, the GBP/USD advanced steadily in Asia, and continues now in Europe, reaching so far 1.6991, a couple pips below this year high. The wide, sudden move has left technical readings in extreme overbought territory in the 4 hours chart, now looking a bit exhausted to the upside but far from suggesting a reversal. Consolidating near the highs, immediate support now comes around 1.6950, and as long as above it the upside remains favored, with a break above 1.7000 triggering a quick spike up to 1.7040, August 2009 monthly high. Further gains will find next short term resistance at 1.7090, albeit 1.7220 price zone comes into play.
A reversal below 1.6950 mentioned support may see the pair falling down to 1.6920, although buyers would likely surge around it and contain the downside, at least today.
View Live Chart for GBP/USD
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