The Great Britain Pound ended higher over the greenback during last weeks trading session after Bank of England Governor Mark Carney said interest rates may rise earlier than markets have been anticipating. Markets have long been suspecting the Bank of England to raise interest rates before other major central banks, and BoE Governor Carney confirmed those sentiments in a speech he delivered on Thursday.
“There’s already great speculation about the exact timing of the first rate hike and this decision is becoming more balanced,” Carney said in prepared remarks of his speech.”It could happen sooner than markets currently expect.” Carney’s words bolstered the pound, while soft U.S. data weakened the dollar against its U.K. counterpart.
The single pair rallied as high as 1.69903 before meeting resistance zones at 1.69957. Weekly bias remains on the upside with Exponential Moving Averages 21 and 55 EMA crossing to the upside on the 1 hour, 4 hours and Daily time-frames. MACD and SSRC are showing bullish continuation but we have the RSI and Stochastic signalling an over-bought market on the 4 hours charts, so i would advice to be patient for a retracement, which the 1 hor charts is about doing. We will be buying from the dip if we get a reversal price action towards the upside on an important Fibonacci retracement level using a pin bar or an engulfing pattern.
A clear break of 1.69903 and 1.69957 resistances could bring further rise to 1.7100 psychological zones. However we would need a fundamental back up to resume such rise as investors would be eyeing the GBP CPI y/y, MPC Asset Purchase Facility Votes, MPC Official Bank Rate Votes and lastly the USD FOMC Economic Projections, which are scheduled to be published later this week.