GBP/USD Firmer, Surpassed 1.4600

GBP/USD Firmer, Surpassed 1.4600

24 May 2016, 13:37
Roberto Jacobs

GBP/USD Firmer, Surpassed 1.4600

The buying interest around the sterling remains well and sound today, with GBP/USD advancing beyond the 1.4600 handle.

GBP/USD up on polls. BoE

GBP met renewed upside pressure after latest results from polls showed the ‘Stay’ vote keeps leading with 55% while the ‘Leave’ vote stays at 42% so far.

The upside momentum gathered extra steam following the Inflation Report by the BoE, where the central bank sees inflation figures picking p up pace through the current year.

At his testimony before the TSC, Governor M.Carney suggested that a ‘Bremain’ scenario could see the next move in rates to be a hike, while MPC member M.Weale said the lack of reaction in UK wages over the last 18 months remains baffling.

GBP/USD levels to consider

As of writing the pair is advancing 0.83% at 1.4609 facing the immediate hurdle at 1.4666 (high May 19) ahead of 1.4770 (high May 3) and then 1.4815 (2016 high Jan.4). On the other hand, a breakdown of 1.4365 (20-day sma) would aim for 1.4335 (100-day sma) and finally 1.4330 (low May 16).


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