Sterling rises sharply after surprised BoE rate hike. GBP/USD’s break of 1.3351 support turned resistance confirms short term bottoming at 1.3158. More importantly, it’s the first sign that corrective fall from 1.4248 has completed at 1.3158 after hitting 38.2% retracement of 1.1409 to 1.4248 at 1.3164. Sustained trading above 55 day EMA (1.3453) will affirm this bullish case.
Similarly, GBP/JPY’s break of 152.35 support turned resistance argues that correction from 158.19 has completed at 148.94, after defending 148.93 support. Further rise would be seen to 154.70 resistance. Break there will pave the way to retest 158.19 high.