Cable spiked lower to session low at 1.3148 on knee-jerk reaction after BoE’s left no surprise on 7-2 vote for rate hike on today’s meeting. The Bank of England left interest rates and QE unchanged at 0.25% and 435 billion pounds respectively, which disappointed traders who expected more hawkish voting configuration. However, comments from BoE sounded optimistic and inflated pound for strong acceleration which returned above 1.3300 barrier and probes above yesterday’s high at 1.3328. BoE MPC’s policymakers said their first interest rate rise in more than a decade, was likely to be needed in coming months if economy growth and inflationary pressures continue to build. Markets took BoE’s message as hawkish that sent pound into strong bullish acceleration, signaling that corrective phase off 1.3328 high is over. Bullish techs and renewed positive sentiment after BoE are supportive for acceleration towards target at 1.3473, provided by weekly cloud top.
Res: 1.3336; 1.3385; 1.3457; 1.3473
Sup: 1.3268; 1.3200; 1.3148; 1.3121