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3 Apr 2014
GBP/USD propelled by a hawkish governor
FXStreet (Guatemala) - GBP/USD has spiked in Asia of all markets and is trading 20 or so pips higher on the back of what appears to be a recent interview with Carney.
Currently, GBP/USD is trading at 1.6646, up 0.13% on the day, having posted a daily high at 1.6655 and low at 1.6621.
Carney said it
When asked about ruling out rate hikes ahead of the general election, Carney said “No, absolutely not.” Later he explained fully, ““We will set policy as appropriate to meet our core responsibility to meet the two per cent inflation target. We haven’t set timing conditions on when that will be... we have been as explicit as we can about the nature of adjustments to interest rates, but we cant be specific. But we are absolutely clear that it will happen independent of the political cycle….When you raise interest rates it is a welcome sign. I share my colleague Charlie Bean’s view that it is confirmation the economy is recovering after some very difficult years... I’m not sure we will get a lot of cards or letters to thank us, but we will do it when it needs to happen.”
GBP/USD Levels (Engulfing Bullish Formation - 4hr)
With spot trading at 1.6648, we can see next resistance ahead at 1.6654 (Daily Classic R1), 1.6655 (Daily High), 1.6662 (Weekly High), 1.6666 (Yesterday's High) and 1.6682 (Daily Classic R2). Support below can be found at 1.6639 (Hourly 100 SMA), 1.6637 (Daily Classic PP), 1.6634 (Hourly 20 EMA), 1.6626 (Daily Open) and 1.6621(Daily Low). Looking to candlestick patterns, we can see a Engulfing Bullish formation on the 4-hour chart.
Currently, GBP/USD is trading at 1.6646, up 0.13% on the day, having posted a daily high at 1.6655 and low at 1.6621.
Carney said it
When asked about ruling out rate hikes ahead of the general election, Carney said “No, absolutely not.” Later he explained fully, ““We will set policy as appropriate to meet our core responsibility to meet the two per cent inflation target. We haven’t set timing conditions on when that will be... we have been as explicit as we can about the nature of adjustments to interest rates, but we cant be specific. But we are absolutely clear that it will happen independent of the political cycle….When you raise interest rates it is a welcome sign. I share my colleague Charlie Bean’s view that it is confirmation the economy is recovering after some very difficult years... I’m not sure we will get a lot of cards or letters to thank us, but we will do it when it needs to happen.”
GBP/USD Levels (Engulfing Bullish Formation - 4hr)
With spot trading at 1.6648, we can see next resistance ahead at 1.6654 (Daily Classic R1), 1.6655 (Daily High), 1.6662 (Weekly High), 1.6666 (Yesterday's High) and 1.6682 (Daily Classic R2). Support below can be found at 1.6639 (Hourly 100 SMA), 1.6637 (Daily Classic PP), 1.6634 (Hourly 20 EMA), 1.6626 (Daily Open) and 1.6621(Daily Low). Looking to candlestick patterns, we can see a Engulfing Bullish formation on the 4-hour chart.