Cable finally conquered 1.70. Carney’s rate hike message sent the pair higher while the world had one eye on the world cup, and a second shove in the wake of the first European session of the new week sent it above the round number.
The next target is close: the post crisis high of 1.7040 — more coming —
One of the reasons for the last move was a weekend interview by BOE member Charlie Bean, that said that higher rates should be welcomed.
The high so far is 1.7008. After Carney’s initial message, cable went higher but stopped again at 1.6990, forming a double top. It took the weekend for traders to push GBP/USD above this round number.
Update: the pair continues surging. The pound is also gaining against the euro, with EUR/GBP falling to a low of 1.6962.
It is a busy week for the British pound: tomorrow, inflation numbers are published in the UK, and they could also have an impact on the timing of the rate hike. On Wednesday, the meeting minutes of the last rate decision are released, and we will learn if one BOE member already voted for a hike now.
For all the lines, events and analysis, see the GBP to USD prediction.
