GBP/USD moves above 1.3100 on BoE, focus now on Carney

Cable retakes 1.3100 and beyond post-BoE on Thursday.
The BoE hikes rates by 25 bp to 0.75%, as expected.
The MPC voted unanimously to hike rate at today’s meeting.

Pablo Piovano FXStreet

GBP/USD managed to rebound from session lows in the 1.3070 region today to levels beyond 1.3100 the figure in the wake of the BoE meeting.

GBP/USD now looks to Carney

Cable has moved above the 1.3100 milestone after the BoE raised the key rate by 25 bps to 0.75%, matching the broad consensus. The MPC vote 9-0 to lift rates, adding some sustainability to the central bank’s decision.

The BoE added that further rate hike might be needed.

In addition, the ‘Old Lady’ left intact the asset purchase facility at £435 billion and purchases of corporate bonds at £10 billion.

Looking ahead, GBP should remain under scrutiny, as Governor M.Carney will hold a press conference at 1130GMT.

GBP/USD levels to consider

As of writing, the pair is losing 0.07% at 1.3118 and a break below 1.3068 (low Aug.2) would open the door to 1.3050 (low Jun.28) and finally 1.2957 (2018 low Jul.19). On the flip side, the next hurdle lines up at 1.3162 (21-day sma) followed by 1.3215 (high Jul.28) and then 1.3245 (55-day sma).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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