Forex: GBP/USD back to 1.5200 after comments from BoE officials

Contrary to most European currencies, the British Pound strengthened against the greenback as it corrects from the sharp sell off seen lately after hitting as low as 1.5074. The GBP is also acting as a safe haven against Euro troubles as Italy faces political uncertainty after yesterday's election results.

BoE officials have been speaking publicly. BoE's Bean expects UK growth to strengthen through 2013-14 and is open to more QE depending on outlook for demand and inflation. BoE's McCafferty pointed to receded risks of a Euro break-up, but that they are still there, with Italian elections proving the point. After the London opening, the GBP/USD bounced from 1.5141 and shot up back to 1.5200 area, up by +0.25% on the day.

"The GBP/USD currency pair is still moving near its minimums; the market has already formed the first ascending impulse and corrected it. I think today the price may form the second impulse and break the previous descending channel; the target is at 1.5270", wrote Roboforex.com analyst Igor Sayadov, pointing then to a return to 1.5170 before starting to form a head & shoulders reversal pattern with the target at 1.5500.