13 Feb 2014
GBP/USD toying with 1.6650
FXStreet (Edinburgh) - The sterling continues its relentless march north on Thursday, with the GBP/USD extending its rally near 1.6650.
GBP/USD in 3-week highs
The pair is thus extending its bounce off sub-1.6300 levels in early February, looking to challenge ytd peaks in the vicinity of 1.6670 (January 24th) backed by the recent upbeat tone from the BoE’s Quarterly Inflation Report. In the opinion of BBH Global Currency Strategy Team, “The bottom line is that while the general view remains of a risk of a BOE rate hike in Q1 2015, many observers and investors see heightened risk of an earlier hike, as in late 2014. The market went into this week thinking that it was a close call who would raise rates first the Fed of the BOE, Yellen seemed ultimately more convincing than Carney”.
GBP/USD levels to consider
At the moment the pair is gaining 0.30% at 1.6643 with the next up-barrier at 1.6668 (2014 high Jan.24) ahead of 1.6700 (psychological level). On the downside, a breach of 1.6425 (low Feb.12) would aim for 1.6392 (low Feb.11) and then 1.6384 (low Feb.10).
GBP/USD in 3-week highs
The pair is thus extending its bounce off sub-1.6300 levels in early February, looking to challenge ytd peaks in the vicinity of 1.6670 (January 24th) backed by the recent upbeat tone from the BoE’s Quarterly Inflation Report. In the opinion of BBH Global Currency Strategy Team, “The bottom line is that while the general view remains of a risk of a BOE rate hike in Q1 2015, many observers and investors see heightened risk of an earlier hike, as in late 2014. The market went into this week thinking that it was a close call who would raise rates first the Fed of the BOE, Yellen seemed ultimately more convincing than Carney”.
GBP/USD levels to consider
At the moment the pair is gaining 0.30% at 1.6643 with the next up-barrier at 1.6668 (2014 high Jan.24) ahead of 1.6700 (psychological level). On the downside, a breach of 1.6425 (low Feb.12) would aim for 1.6392 (low Feb.11) and then 1.6384 (low Feb.10).