FXStreet (Edinburgh) - The sterling is now deflating from recent highs around 1.6990, pushing the GBP/USD to the mid-1.6900s at the moment.
GBP/USD propped up by Carney
The pound is outperforming its peers on Friday despite the generalized risk-off sentiment. Governor M.Carney hinted at the likeliness of a rate hike sooner than market expectations in his speech last night, prompting traders to quickly take positions in GBP and thus lifting spot close to the 1.700 psychological barrier. “With Governor Carney also noting “early signs” of a housing bubble, a November rate hike now seems the most plausible scenario to us”, noted Derek Halpenny, European Head of Global Markets Research at BTMU.
GBP/USD key levels
At the moment the pair is advancing 0.14% at 1.6953 and a surpass of 1.6997 92014 high May 6) would target 1.700 (psychological level) en route to 1.7044 (high Aug.5 2009). On the flip side, the initial support aligns at 1.6923 (low Jun.13) followed by 1.6900 (psychological level) and finally 1.6828 (30-d MA).