Sterling on Fire as Carney Leaves the Rate Unchanged - Forex News by FX Leaders

Sterling on Fire as Carney Leaves the Rate Unchanged

Posted Thursday, February 8, 2018 by
Arslan Butt • 1 min read

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

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!

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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