GBP/USD jumps towards 1.4200 as BOE’s Haldane hints at tapering

GBP/USD catches fresh bids on BOE Haldane’s taper talk.
Subdued DXY and Treasury yields underpin the spot.
All eyes remain on Brexit talks and US CPI report.

Dhwani Mehta FXStreet

GBP/USD is advancing towards 1.4200, catching a fresh bid on the hawkish comments from the Bank of England (BOE) Chief Economist Andy Haldane.

Haldane said that the "UK economy is going gang-busters" and, therefore, the central bank “may need to start turning off the stimulus tap.”

The cable jumped nearly 30-pips in a knee-jerk reaction to the BOE policymaker’s comments, further helped by a broadly subdued US dollar and the Treasury yields.

The GBP bulls shrug off the Brexit deadlock and uncertainty over the UK reopening. The UK PM Boris Johnson sticks to his plan of reopening the economy on June 21 despite the latest reports of likely delay due to the concerns over the Indian delta covid strain.

Meanwhile, the UK and European Union’s (EU) Brexit negotiators are due to meet later today, in the last minutes efforts to resolve the Northern Ireland (NI) protocol issue.

However, the main event risk for markets this week remains the US CPI report, which will throw fresh cues on the Fed’s next monetary policy action amid rising inflationary risks.

Thus, the US dollar remains on the defensive, contemplating the next moves heading into Thursday’s key event.

GBP/USD technical levels

GBP/USD

Overview
Today last price	1.4177
Today Daily Change	0.0020
Today Daily Change %	0.14
Today daily open	1.4156

Trends
Daily SMA20	1.4147
Daily SMA50	1.3982
Daily SMA100	1.3911
Daily SMA200	1.356

Levels
Previous Daily High	1.4185
Previous Daily Low	1.4121
Previous Weekly High	1.4249
Previous Weekly Low	1.4083
Previous Monthly High	1.4234
Previous Monthly Low	1.3801
Daily Fibonacci 38.2%	1.4145
Daily Fibonacci 61.8%	1.416
Daily Pivot Point S1	1.4123
Daily Pivot Point S2	1.409
Daily Pivot Point S3	1.4059
Daily Pivot Point R1	1.4186
Daily Pivot Point R2	1.4217
Daily Pivot Point R3	1.425

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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