GBP/USD soars and ends week pointing toward October highs

FXStreet (Córdoba) – The pound jumped across the board during the American session and pushed GBP/USD to rocket above 1.5400. Cable reached at 1.5466 a 1-week high and then pulled back modestly. It was about to end the week trading at 1.5430/45,130 pips above the level it had a week ago.

All weekly gains came from Friday’s rally. The pair broke a short-term downtrend line and jumped, rising back above the 20-day MA that stands at 1.5340. The 140-pips gain on Friday, was the second best performance of the month.

GBP/USD near Oct highs

Ahead of the Quarterly Inflation Report ant the Bank of England monetary policy decision next Thursday, GBP/USD rallied approaching October highs that lie at 1.5510. “Given that the BoE and the Fed are the only two G10 central banks to have set the scene for the next policy move to be a rate hike we expect GBP/USD to remains in a range medium-term, albeit a potentially choppy one”, said Jane Foley, FX Strategist at Rabobank. Analysts from Rabobank projects that the BoE will start the hike cycle in August 2016.

The pound jumped across the board during the American session and pushed GBP/USD to rocket above 1.5400. Cable reached at 1.5466 a 1-week high and then pulled back modestly. It was about to end the week trading at 1.5430/45,130 pips above the level it had a week ago.


(Market News Provided by FXstreet)