GBPUSD is on the move after Carney's speech

All eyes were on Carney today delivering his speech at the quarterly inflation report which seemed to inspire some confidence back into the GBP.  We've been watching the 1.5400 level for sometime now and have breached it already today shortly after, but now lets see if it can hold it.  If we can, we should see a rally up to the 1.5600 level.  The Bollinger bands could slow the rate of assent though and its hovering around the top band like a bad smell.  A failure to hold, on the move up could see a correction back down to the 1.5200.

This is a most certainly wait and see situation as there will be a lot of whippy price action in the markets ahead and you want to avoid getting caught up in the noise!







Interestingly enough though if you take a step back to the LT performance of the currency pairings, there seems to be a cyclical aspect to the GBPUSD spanning 13/14 months since the financial crisis?? Which if holds true, we are at the trough of the cycle and could be in for some upward pressure over the course of 6 months.  Tying in nicely with the MT & ST views.



Charts sourced from IG Index