- GBP/USD rose to hit three weeks high on Wednesday as sterling was boosted after Bank of England Governor Mark Carney said the Bank was likely to need to raise interest rates and would debate this "in the coming months".
- Speaking at a European Central Bank conference in Portugal, Carney said policymakers would need to look at the extent to which stronger business investment offset a slowdown in consumption, as well as growth in wages and labour costs.
- The pound jumped a cent to $1.2943 after the speech's release, its strongest since June 9, the day of the results of Britain's parliamentary elections.
- The ongoing upside is set to continue for this pair as the support level at 1.2834 is likely to act as strong barrier to the bears and push the pair towards higher level.
- To the upside, immediate resistance can be seen at 1.2961, a break above this level would expose the cable to next resistance level at 1.3000 levels.
- To the downside strong support can be seen at 1.2834, a break below at this level will open the door towards next level at 1.2768.
Resistance Levels
R1: 1.2961 (38.2 % Retracement level)
R2: 1.3000 (Psychological levels)
R3: 1.3084 (23.6 % Retracement level)
Support Levels
S1: 1.2889 (May 18th lows)
S2: 1.2834 (50 % Retracement level)
S3: 1.2768 (May 31st lows)
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