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.”
(Market News Provided by FXstreet)