The GBP/USD looks set to test the 1.5480 and the 1.5800, which would be the 38% retracement of the drop from July 2014.
Blake Morrow
Chief Currency Strategist, Wizetrade
The BOE Inflation Report and comments from Mark Carney were viewed as hawkish today. The GBP/USD is reflecting this in the price action as the pair breaks higher. Also, please note the GBP is strong against the EUR, CAD, AUD, NZD and CHF as well.
The GBP/USD hourly chart has a possible cup and handle pattern if the hourly chart can push past the 38% retracement level and horizontal resistance that resides at 1.5225.
If the GBP/USD can break higher, the upside target resides near the 61.8% retracement and trend line that has been in existence since July 2014.
Blake Morrow
Chief Currency Strategist, Wizetrade
Disclaimer: I am not long the GBP/USD but may establish a long position within the next 72 hours.
The GBP/USD rallied into major resistance and 5+ year highs at 1.7040, tripped a 127% extension at 1.7060 (not shown) all while diverging on RSI. The pair looks set to pull back after the BOE’s inflation report hearings earlier today.
Blake Morrow
Chief Currency Strategist, Wizetrade
Disclaimer: I did short the GBP/USD earlier in the session close to 1.7000 and plan on holding for the next few days.
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