GBP/USD: skyrocketed onto 1.45 handle – FXStreet

By FXStreet Valeria Bednarik, chief analyst at FXStreet explained that the British Pound skyrocketed, outperforming its major rivals, and reaching 1.4502 against the greenback, the highest since February 16th.

Key Quotes:

“The BOE announced its latest economic policy decisions this Wednesday, will all nine members voting to keep rates unchanged at 0.5%, and the Assets Purchase Program at £375 billion.

The BOE also warned that the uncertainty surrounding a Brexit, represents a downward risk for the economy in the months ahead of the vote, and will likely weigh on Sterling.

The GBP/USD retreated after these comments, but only to jump higher on broad dollar weakness. Currently trading above the 61.8% retracement of this year’s decline, the short term picture is bullish for the pair, as the technical indicators have resumed their advances well into overbought territory, after a limited downward correction, whilst the 20 SMA heads sharply higher below the current level.

In the 4 hours chart, the Momentum indicator keeps heading north within overbought territory, but the RSI indicator has lost its upward strength, rather suggesting some consolidation ahead than supporting a downward move.”
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Source:: FX Street