GBPUSD surges ahead of Bank of England meating.
GBPUSD rising strongly today under the growing sterling bullishness as well as the significant USD outflows as the markets continue to make sense of the FED comments made last week – which led to massive losses for this currency pair. The scale of the USD gains has triggered the current correction in USD sentiment – leading to GBPUSD gains. The pair is also driven up by the expectation of the more optimistic economic assessment from the Bank of England, which next meets on Thursday, – could push sterling towards $1.40 fast. In the meantime, investors brought forward bets that the BoE would raise interest rates sooner than they thought previously, flattening the yield curve for British government bonds and mirroring a recent move in U.S. Treasuries – which adds to the bullish pressure on GBPUSD.
Next resistance to watch – 1.1939