GBP/USD trades near 1.3445, supported by the 100-day SMA at 1.3400, while traders weigh the BoE's hawkish 4.00% rate policy against an 84% probability of a Fed rate hike next month.
The pair trades positive around 1.3445 and holds above the 100-day SMA at 1.3400, keeping a modest bullish bias with resistance near the Bollinger upper band at 1.3500. The hawkish BoE hike to 4.00% supports Sterling, but dovish comments from BoE chief economist Pill and strong Fed rate-hike odds (84% for next month) after a strong US jobs report cap the upside. The US October CPI release later today is the key near-term risk.
The GBP/USD pair maintains a constructive bias, trading around 1.3445 as it holds above the 100-day SMA of 1.3400. While the Bank of England's recent 25 bps rate hike to 4.00% supports the Pound, investors remain cautious ahead of today's US October CPI report and strong Fed rate-hike expectations of 84%.
The pair stays above the 100-day simple moving average at 1.3400 after the Bank of England raised rates by 25 basis points to 4.00%, keeping a modest bullish bias as long as that support holds.
The US October CPI inflation report is the immediate risk, and a sustained move above the 1.3500 Bollinger band resistance could target the September 9 high of 1.3568, while a break below 1.3400 could expose 1.3370 and 1.3272.