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22 Apr 2015
GBP/USD rises to 1.5040
FXStreet (Mumbai) - The GBP/USD pair rose to a high of 1.5040 after the Bank of England (BOE) minutes released today showed policy makers see an interest rate hike over a three year forecast period.
GBP rises with Gilt yields
The short-end gilt yields, which are sensitive to short-term interest rate expectations, shot higher after the release of the BOE minutes. The expectation that inflation would eventually match the pace of economic growth also helped pushed the yield higher across the curve. Consequently, the pair rose to a high of 1.5040 levels.
On the other hand, the Treasury yields in the US have weakened, thereby titling the yield spread in favor of the British Pound.
GBP/USD Technical Levels
The immediate resistance is seen at 1.5050, above which gains could be extended to 1.5104 (100-DMA). On the flip side, a break below 1.5 could drive the pair back to its 50-DMA at 1.4964.
GBP rises with Gilt yields
The short-end gilt yields, which are sensitive to short-term interest rate expectations, shot higher after the release of the BOE minutes. The expectation that inflation would eventually match the pace of economic growth also helped pushed the yield higher across the curve. Consequently, the pair rose to a high of 1.5040 levels.
On the other hand, the Treasury yields in the US have weakened, thereby titling the yield spread in favor of the British Pound.
GBP/USD Technical Levels
The immediate resistance is seen at 1.5050, above which gains could be extended to 1.5104 (100-DMA). On the flip side, a break below 1.5 could drive the pair back to its 50-DMA at 1.4964.