GBP/USD extends gains, approaching high resistance

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The British pound enjoys another round of buying following the BOE’s hawkish tilt last week, as well as the Federal Reserve’s dovish hike.

GBP/USD is now trading at 1.2410. The next resistance line is very close: 1.2415. Further resistance is only at 1.2540. Support awaits at 1.2360.

The Rightmove House Price Index showed a rise of 1.3% in prices after 2% in the previous month, but it seems that the gains stem from the events seen last week.

One member of the Monetary Policy Committee, Kristin Forbes, decided to vote for raising rates in the UK amid rising inflation. We well get fresh inflation figures tomorrow. Others considered it seriously, especially if prices rises persist.

It is important to remember that the UK government is about to trigger Article 50 – the official announcement about leaving the European Union. This is due next week and will start the 2-year clock. The EU is in no rush to reach an agreement and remove the uncertainty anytime soon.

On the other side of the pond, the Fed hiked the interest rate, but without changing its views. Here are 5 reasons for the fall of US dollar. The US dollar is suffering a sell-off across the board.

BOE Chief Economist Andy Haldane will speak late in the day as well as Charles Evans of the Chicago Fed. They could contribute to the wobbling of cable.

More: GBP/USD – what’s next after the hawkish tilt? – two opinions

Here is how the moves look on the pound/dollar chart.

Get the 5 most predictable currency pairs

About Author

Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned the significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

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