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17 Feb 2014
GBP/USD hits a new 50-month high, 1.68 a whisker away
FXStreet (Bali) - GBP/USD remains unstoppable, with Asian accounts breaking above important weekly resistance at 1.6750 (April 24 2011 high) to currently extended the rise towards 1.68.
BoE Carney - Further evidence on UK business investment needed
Over the weekend, Bank of England Governor Mark Carney, in an interview to BBC, said that the recovery in the British business investment is still limited, while highlighting that they continue to watch Britain's housing market very closely, as fears of overheating mount.
Last Wednesday's BOE inflation report outlined the fact that interest rates are intended to stay low to help with a stronger recovery, with monetary policy-makers adding that rates above 2% or 3% in the coming years are unlikely.
That being said, the stagnation in USD positive inputs (mix/soft data in the US + March taper doubtful) coupled with optimism over rate hikes in the UK, continue to inflate the GBP/USD exchange rate further.
GBP/USD technicals
Technically, Valeria Bednarik, Chief Analyst at FXStreet, offered her view on the pair: "Moving averages in the hourly grind higher well below current price, while the 4 hours chart shows also indicators heading higher in overbought territory."
Bednarik identifies the following key levels: "Immediate short term support is now 1.6745, past Friday high, while the pair has scope to extend its advance towards 1.6810/20 now, eyeing 1.6870 for the upcoming sessions."
BoE Carney - Further evidence on UK business investment needed
Over the weekend, Bank of England Governor Mark Carney, in an interview to BBC, said that the recovery in the British business investment is still limited, while highlighting that they continue to watch Britain's housing market very closely, as fears of overheating mount.
Last Wednesday's BOE inflation report outlined the fact that interest rates are intended to stay low to help with a stronger recovery, with monetary policy-makers adding that rates above 2% or 3% in the coming years are unlikely.
That being said, the stagnation in USD positive inputs (mix/soft data in the US + March taper doubtful) coupled with optimism over rate hikes in the UK, continue to inflate the GBP/USD exchange rate further.
GBP/USD technicals
Technically, Valeria Bednarik, Chief Analyst at FXStreet, offered her view on the pair: "Moving averages in the hourly grind higher well below current price, while the 4 hours chart shows also indicators heading higher in overbought territory."
Bednarik identifies the following key levels: "Immediate short term support is now 1.6745, past Friday high, while the pair has scope to extend its advance towards 1.6810/20 now, eyeing 1.6870 for the upcoming sessions."