The Great Britain Pound gained strength over the strong U.S dollar on Wednesday’s trading session after the minutes of the Bank of England’s latest policy meeting showed an ongoing split over the necessity to raise interest rates.
The minutes of the BoE’s November policy meeting showed that members voted unanimously to keep the asset puschase facility program on hold.
However, members Martin Weale and Ian McCafferty voted for the fourth consecutive time to raise interest rates to 0.75% from a record-low 0.5%.The report came a week after the BoE said that inflation is likely remain below its 2% target in the near term and fall below 1% at some point during the next six months.
Intraday bias remains slightly on the upside as 21 and 55 EMA are crossed northward in the 1 hour time frame with SSRC, OSMA and RSI oscillators showing bullish momentum is still in play. However the 4 hours and daily time frame remains in a bearish bias, so caution is advised. Am expecting further rise to 1.57300 resistance (weekly central pivot point).
Tomorrow investors would be taking a close look on the Great Britain Pound Retail Sales.