Morning Market Update – GBP/USD Awaiting Action from BoE

GBP/USD is at a level that was last seen in September 2016 hoping that BoE will act. Today’s wages growth report will determine if the present momentum will continue or not. The pair had a quick gain yesterday with minor pull backs during the early US session and is pointing up for the day.

This strength is across the board and GBP/USD drew more buyers around the 20 SMA on the 4 hours chart. Price continues to trade within an ascending channel in the weekly chart and has broken above the 23.6% fib drawn from 2014 decline. The next target is 1.3338 followed by 1.3512, while large FX managers speculate the price to reach 1.39 by the end of 2018.

Small and retail traders are placing long orders on all dips with a hope that the Bank of England will act swiftly.