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FxWirePro: GBP/USD rally capped at 1.5404, focus on BoE's MPC meet (Thursday)

  • Sterling rose for a second day against the dollar on Tuesday, extending Monday's gains on M&A news 

  • Mitsui Sumitomo Insurance said it had agreed to buy British insurer Amlin Plc in a cash deal that values the latter at about 3.46 billion pounds ($5.31 billion)

  • Sterling hit a one-week high of $1.5390, recovering from the four-month low of $1.5163 struck on Friday, as short sterling positions being squeezed

  • Cable rally was however capped at 1.5404, the pair has edged lower and currently trades at 1.5381

  • Immediate resistance is located at 1.5407 (Daily High Aug 1), while support on the downside is seen at 1.5352 (4h 55EMA)

  • Investors eyeing BoE's MPC meet on Thursday and release minutes. Last month just one MPC member voted in favour of an immediate rate hike

Resistance Levels:

R1: 1.5407 (Daily High Aug 1)

R2: 1.5415 (38.2% of 1.5820 - 1.5164)

R3: 1.5437 (Daily High Aug 31)

Support Levels: 

S1: 1.5368 (session lows Sept 8)

S2: 1.5352 (4h 55EMA)

S3: 1.5217 (30 DMA Lower Bollinger)

  • Market Data
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