FxWirePro: Outlook for pound against commodity pairs BoE hike hint

Sterling went upbeat after a rare interest rate guidance from the central bank. Here is the line, “A majority of MPC members judge that, if the economy continues to follow a path consistent with the prospect of a continued erosion of slack and a gradual rise in underlying inflationary pressure then, with the further lessening in the trade-off that this would imply, some withdrawal of monetary stimulus is likely to be appropriate over the coming months in order to return inflation sustainably to target.”

The momentum increased after MPC member Gertjan Vlieghe, a known dove called for hikes in the coming months.

Let’s assess the pound’s outlook against commodity in light of the above development.

• GBP/AUD - Outlook is bullish at the moment. However, a long term bearish trend likely to exert pressure. Likely target around 1.744 area. Key support is around 1.672 area. Resistance around 1.71 and 1.75 area. Currently trading at 1.695
   
• GBP/NZD - Outlook is bullish at the moment. Likely target around 1.89 area. Key support is around 1.845 area. Resistance around 1.9 area. Currently trading at 1.865
   
• GBP/CAD - Outlook is bullish at the moment. Likely target around 1.69 area. Key support is around 1.6 area. Resistance around 1.675 area. Currently trading at 1.649