GBP/USD clinches to 1.6650

By FXstreet.com | Updated August 20, 2014 AAA

FXStreet (Edinburgh) - The sterling remains on the right footing on Wednesday, with the GBP/USD meandering around the mid-1.6600s so far.

GBP/USD bid despite the risk-off tone

The upbeat sentiment post-BoE minutes is currently bolstering the upside in the sterling, managing quite well to keep the middle area of 1.6600. It is worth recalling that the GBP reacted positively following the MPC vote, where members M.Weale and I.McCafferty favoured an immediate rate hike. “The August MPC Minutes symbolically brought the first dissenting policy votes, but we do not believe that a November 2014 Bank Rate hike is materially more likely following these Minutes… The RBS forecast remains for the first 25bp hike to come in February 2015, with 25bp increases in the Inflation Report months of May, August and November 2015 – ie, Bank Rate at 1.5% at end-2015”, suggested Ross Walker, Analyst at RBS.

GBP/USD levels to consider

As of writing the pair is up 0.20% at 1.6650 with the next hurdle at 1.6722 (10-d MA) followed by 1.6728 (high Aug.19) and finally 1.6739 (high Aug.18). On the flip side, a breakdown of 1.6567 (low Apr.7) would target 1.6555 (low Apr.4) en route to 1.6500 (psychological level).

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