FXStreet (Łodź) - FXStreet Chief Analyst Valeria Bednarik remarks that since the beginning of the European session today GBP/USD has seen a strong demand in the short term, even following the release of the UK Financial Stability Report in which the BoE outlined measures aimed at stabilizing the housing market and curbing debt.
"The BOE is concerned about a possible housing bubble, and will act if needed, plus sees financial stability risks from rising debt, but at the end, gave no surprises or tips on upcoming economic policies, helping the pair recover up to1.7034 so far today."
"The 4 hours chart shows price advancing strongly up above its 20 SMA while indicators are crossing their midlines to the upside supporting further intraday gains as long as above 1.7000 now."
"Some intraday resistance stands at current levels as the pair stalled in the 1.7035 area several times over the last few days, yet once above, a quick run towards the year high of 1.7061 can be expected."
"An advance above this last should trigger some stops gathered there, and therefore see a price acceleration up to the 1.7100 figure."
"Back below 1.7000, risk is of a downward move towards 1.6950, albeit buyers are expected to surge on approaches to this last."