GBP/USD off daily highs, back around 1.2815

Pablo Piovano FXStreet

The Sterling is gaining further ground on Wednesday, lifting GBP/USD to the area of daily highs around 1.2830 albeit easing some pips afterwards.

GBP/USD looks to Carney

Cable’s upside bias remains well and sound for the time being, advancing for the sixth consecutive session in a context of broad-based USD weakness.

In the meantime, the greenback continues to suffer the continuation of the selling bias, dragging the US Dollar Index (DXY) to the area of fresh multi-month lows near the key 95.90 region (levels last traded in the wake of the US elections back in early November).

GBP gathered extra steam following yesterday’s Financial Stability Report by the BoE, where the Financial Stability Committee decided to tighten its controls on bank credit to more normal levels. At his press conference later, Governor M.Carney said “monetary policy is the last line of defence to address financial stability issues”.

All eyes today on Carney’s speech at the policy panel at the ECB Forum on Central Banking, amidst an otherwise empty UK docket. In the US data space, May’s pending home sales and the EIA’s weekly report on US crude oil inventories will be in the limelight later in the NA session.

GBP/USD levels to consider

As of writing the pair is up 0.01% at 1.2814 and a breakout of 1.2838 (55-day sma) would open the door to 1.2858 (high Jun.27) and then 1.2979 (high Jun.8). On the other hand, the next support aligns at 1.2791 (21-day sma) followed by 1.2732 (10-day sma) and finally 1.2587 (low Jun.21).

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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