GBP/USD extends post-BoE upsurge, hits highest level since July 2016

Haresh Menghani FXStreet

The GBP/USD pair extended its post-BoE upsurge and touched an intraday high near mid-1.3400s, the highest since July 2016.

Thursday's BoE monetary policy meeting minutes suggested that interest rates could rise faster than anticipated by the market and continued underpinning the British Pound.

• BoE: Type of hiking cycle matters more for GBP - ING

Meanwhile, the US Dollar has failed to capitalize on yesterday's stronger-than-expected CPI print for August, indicating some impact from Hurricane Harvey and did little to hinder the pair's strong upsurge to fresh yearly tops.

Next on tap would be a scheduled speech by External BOE MPC Member Gertjan Vlieghe and BOE's Quarterly Bulletin. Later during the NA session, the key monthly retail sales data from the US would influence Fed rate hike expectations and provide some fresh impetus.

• US Retail Sales Preview - HSBC

Technical levels to watch

Momentum above 1.3450 level could get extended towards 1.3480 level ahead of the key 1.35 psychological mark and 1.3535 area (late June 2016 highs). On the flip side the 1.34 handle now becomes immediate support to defend, which if broken could trigger a corrective slide towards 1.3335-30 zone.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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