Around 10-15 pips was the actual range over the release of the report and the accompanying waffle.
There wasn’t much in Carney’s comments to give the pound any real reason to make a move either way. The news is supportive of the UK economy but whether the market takes that into the price is undecided. The focus for rates is unchanged so there was nothing for that crowd either.
The recent highs looked in danger only momentarily but we didn’t really see a full on effort to test them again. Those that took us above 1.70 will be looking for a follow through or they will likely call it a day and then we could see it fall back.
GBP/USD h1 chart 26 06 2014
1.7050/60 is the line we need to break on the upside to potentially see some fun and games.
At the moment we’re seeing some mild support coming in at 1.7020 but we need to watch for potentially stronger support at the busted 1.7000/05 area, as a fall back through could see us testing the days lows once again. This will be the level buyers will want to keep hold of.
Should cable take off, EUR/GBP traders will be keeping close watch on the 0.7960 level as it marks a strong support point going back 2 years.
EUR/GBP weekly chart 26 06 2014
