GBP/USD trades up to a high of 1.3276 on the day

The pair has been on a march higher following the combo of the BOE decision yesterday and poor US economic data and technical selling in the dollar index. Putting both together - a pound positive and dollar negative - the pair has shot up from lows of 1.3102 seen yesterday.

For me, whatever hawkish tones from the BOE is all but settled and now the pair remains very much a dollar trade and the key question today will be 'can the dollar hold up after being rejected at the highs yesterday?'.

As for cable, the pair now runs into a test of the 200-hour MA (blue line) @ 1.3271 and the 50.0 retracement level @ 1.3274. This will be a key level for sellers to defend, as a break higher here will switch the near-term bias to side with the buyers and that will keep the upside momentum going.