Sterling skyrocketed against the US Dollar after the Bank of England kept its rates policy unchanged. Policymakers were unanimous in their decision. GBP/USD jumped to an overnight and near 10-day high at 1.2228 before easing to settle at 1.2186 currently. The stronger US Dollar saw the British currency plunge to a low of 1.1410 earlier this week.
GBP/USD has immediate resistance at 1.2230 followed by 1.2280. Immediate support can be found at 1.2130 followed by 1.2060. The strong upward move was a result of the sharp fall as demand for the US Dollar peaked earlier this week. That demand has eased. We can expect Sterling to consolidate its gains. We may see a corrective move lower to close the gap on the GBP/USD sharp up move.
Look to trade a likely 1.1980-1.2240 range today. No strong views here, although the Pound may have found a base. This is not the time to fall in love with any strong view. Get your levels right, be flexible and quick and trade away.
