Pound Hits 2-Week High As BoE Monetary Policy Remains Unchanged
The British Pound surged to a fresh 2-week high against the greenback of 1.5475, helped by broad dollar weakness. Earlier in the day, the Bank of England released its latest economic policy decision, where the Central Bank decided to maintain unchanged its main benchmark and the APP.
Minutes of the meeting showed that only 1 of the 9 MPC members dissented by voting for a rate hike, as in the previous meeting. The GBP/USD reacted positively to the BOE, jumping to the 1.5450, although it immediately retraced back below the 1.5400 level, finding buying interest in the 1.5380 price zone.
The bullish momentum is losing steam in the short term, as the 1 hour chart shows that the price is well above its 20 SMA, while the technical indicators have turned flat in extreme overbought levels.
In the 4 hours chart, the 20 SMA heads sharply higher well below the current level, whilst the RSI indicator heads higher around 73 and the Momentum indicator is turning slightly higher above the 100 level, all of which supports further gains, with the immediate resistance at 1.5490, the 50% retracement of the latest bearish run.