BOE Remains 'Hawkish', GBP/USD Jumps to $1.1600 Highs Again


 Pound Sterling maintained its strength until mid-week after being supported by hawkish statements by the central bank in setting monetary policy.

After a 75 basis point increase in interest rates was implemented at the previous meeting, the Bank of England's (BOE) Chief Economist Huw Pill stated that the central bank still had a lot to do in policy tightening.

Meanwhile, investors are cautiously awaiting the release of UK economic growth data at the end of the week which will influence the movement of the Pound, but the United States (US) inflation data will first be in focus on Thursday.

The US dollar is still moving weakly at the beginning of this week as investors monitor the progress of the Congressional elections in America with the expectation that the final results will be obtained within a few days after voting started yesterday.

On the price chart of the GBP/USD currency pair, the bullish pattern continues for 3 days in a row.

On Tuesday yesterday, the price that initially fell from the Asian session tested the level of 1.14500 and then surged in the New York session until it reached a high level of 1.16000.

The level is the expected level after prices started trading around that level at the market opening last week.

The price is still moving above the Moving Average 50 (MA50) support level on the 1-hour time frame on the GBP/USD chart, prompting expectations for the price to continue moving in a bullish trend.

If the next upswing manages to break through the resistance at the 1.16000-1.16500 zone, a further rally would be expected to reach around 1.18000 to record the latest 11-week high.

Meanwhile, investors will be alert if the price starts to fall back below the 1.15000-1.14500 zone which could be an early sign of a change in trend.

An extended lower decline is expected to re-reach the support level at 1.13000 which has been the price bounce zone earlier this week.