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28 Nov 2013
GBP/USD hits fresh high after BoE FSR
FXstreet.com (Córdoba) - The GBP/USD picked up fresh momentum and extended gains to a new high during the European session amid a weaker USD and BoE Financial Stability Report.
After pausing around 1.6345 renewed buying emerged taking the GBP/USD to its highest level since Jan 2. The BoE announced it will end mortgage incentives as UK housing momentum is expected to continue and instead is now focusing the scheme on benefiting the small business sector. These announcements worked as catalyst for the Cable jump, which reached a fresh high of 1.6353 in recent dealings. The GBP/USD is currently trading at the 1.6345 zone, recording a 0.4% gain on the day.
GBP/USD technical outlook
From a technical perspective, the GBP/USD holds the positive tone but short-term indicators are in overbought territory, according to Valeria Bednarik, chief analyst at FXstreet.com. "As long as price holds above the 1.6290 level, the upside remains favored", says the analyst. "Below 1.6290 support the pair may again pullback to the 1.6250 support area, although buyers are expected to contain the slide around it".
After pausing around 1.6345 renewed buying emerged taking the GBP/USD to its highest level since Jan 2. The BoE announced it will end mortgage incentives as UK housing momentum is expected to continue and instead is now focusing the scheme on benefiting the small business sector. These announcements worked as catalyst for the Cable jump, which reached a fresh high of 1.6353 in recent dealings. The GBP/USD is currently trading at the 1.6345 zone, recording a 0.4% gain on the day.
GBP/USD technical outlook
From a technical perspective, the GBP/USD holds the positive tone but short-term indicators are in overbought territory, according to Valeria Bednarik, chief analyst at FXstreet.com. "As long as price holds above the 1.6290 level, the upside remains favored", says the analyst. "Below 1.6290 support the pair may again pullback to the 1.6250 support area, although buyers are expected to contain the slide around it".