The GBP/USD has reacted with a rise of more than 85 pips to the unexpected rise in interest rates from the Bank of England. The pair has skyrocketed above 1.3300, reaching two and a half week highs in the 1.3367 zone.
The BoE has raised its rates by 15 basis points, raising it from 0.10% to the current 0.25%, a move not foreseen by the market consensus. The vote has revealed that eight members of the Monetary Policy Committee voted for the rise, compared to the two expected, and only one voted against. The Asset Purchase Program is unchanged and remains at £ 895B.
Traders in the pair are digesting the news now, then will wait for US data on weekly jobless claims, housing starts and industrial production to see if the current strong bullish momentum continues.
GBP/USD Niveles
With the pair trading at time of writing above 1.3365, gaining 0.79% daily, next resistance awaits at 1.3390, ceiling of November 24. To overcome 1.3400, the next barrier will be at 1.3513, maximum of November 18 and of the last four weeks.
To the downside, initial support awaits at 1.3241, minimum of the day. Lower down, the target is at yesterday’s low at 1.3172 and later in 1.3160, soil of December 8 and last year.
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