Sterling on Fire as Carney Leaves the Rate Unchanged

GBP/USD soared sharply to break the bearish trendline resistance at $1.3900. The buyers entered the market right after BOE Governor decided to leave the interest rate on hold. How far can the Cable go now? Let’s find out below…

GBP/USD – Bearish Trendline Breakout  

Looking at the hourly chart, the Sterling has formed a bullish engulfing candle as the Mark Carney keeps supporting the pound saying the global economic growth stronger, broader than for some time.

GBP/USD – Hourly Chart

For now, the pair is very likely to continue its bullish momentum until it reaches to $1.4050 and $1.4090 today. We may see sellers looming in that particular region.

Support     Resistance

1.3907    1.404

1.3826    1.4092

1.3774    1.4173

Key Trading Level:    1.3959

GBP/USD – Trading Plan

It’s a bit late to enter the market now, however, it’s in our best interest to wait for the market to test 1.4090 before entering a sell position to catch the retracement. Good luck!

ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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