GBP/USD moves beyond 1.4000, fresh highs
- Cable extends the bull run beyond 1.40 the figure on Monday.
- Hawkish comments by BoE’s Ramsden found extra buyers.
- UK housing data due next along with speech by BoE’s Cunliffe
The demand for the Sterling remains well and sound at the beginning of the week and is now lifting GBP/USD further north of the psychological 1.4000 handle.
GBP/USD propped up by BoE
Cable is extending the up move for the third session in a row on Monday, moving above 1.40 the figure amidst a softer tone around the greenback and positive comments by BoE’s D.Ramsden.
In fact, at an interview with the Sunday Times, BoE’s Deputy Governor D.Ramsden said the central bank might raise rates sooner than previously anticipated in case wage growth accelerates early this year.
In this regard, it is worth mentioning that market participants continue to see the BoE hiking rates at the May meeting.
Data wise across the Channel, BBA Loans for House Purchase are due for the month of January, while BoE’s Cunliffe speaks later.
News from the speculative community notes GBP net longs retreated to the lowest level since December 5 in the week to February 20, according to the latest CFTC report.
In the meantime, Cable continues its up move unaltered for the time being, opening the door for a potential test of the resistance line off YTD tops seen in late January, today just below 1.4100.
GBP/USD levels to consider
As of writing, the pair is up 0.36% at 1.4025 facing the next hurdle at 1.4097 (resistance line) seconded by 1.4146 (high Feb.16) and finally 1.4280 (high Feb.2). On the flip side, a breach of 1.3857 (low Feb.22) would aim for 1.3765 (low Feb.9) and then 1.3761 (55-day sma).
