FxWirePro; GBP/USD trades higher on rate hike hopes, jump till 1.3400 likely
Cable has jumped sharply after slightly hawkish stance by BOE in the meeting. The pair has jumped from the low of 1.31499 till 1.33245 at the time of writing. BOE has voted 7-2 kept interest rates unchanged at 0.25% vs 6…
Cable has jumped sharply after slightly hawkish stance by BOE in the meeting. The pair has jumped from the low of 1.31499 till 1.33245 at the time of writing.
BOE has voted 7-2 kept interest rates unchanged at 0.25% vs 6-2 meeting today. All MPC members feel that interest rates hike will slightly faster than expected in the coming months if economy follows Quarterly inflation report (QIR). BOE informs that underlying pay growth has showing signs of recovery. The slight hawkish tone by BOE shows that rate hike might slightly earlier than expected
On the higher side, near term resistance is around 1.3325 and any break above will take the pair till 1.3365 (trend line joining 1.30476 and 1.32449)/1.3400.
The near term support is around 1.3250 and any break below will drag the pair down till 1.3150/1.3095/1.3075.
It is good to buy on dips around 1.3295-1.3300 with SL around 1.3250 for the TP of 1.3400
