GBP/USD – Back to the Uptrend?

GBP/USD – Back to the Uptrend?

Although data from UK has been hardly scintillating as of late the rhetoric from MPC members has been surprisingly hawkish. Today BoE Governor Mark Carney stated that rate hikes were coming sooner rather than later and that bombshell was followed by speech from the usually dovish Miles who went out of his way to note that BoE did not need to follow the Fed and could establish its own path towards rate normalization.

The central bank talk has given sterling just the boost it needed and the pair is now squarely back in the uptrend having made a higher low at the 1.5400 figure. The pair still faces stiff resistance at 1.6000, but if the market begins to believe that BoE will be first to move the rally in cable could be just beginning.

Chart Of The Day

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