GBPUSD HIGHER AS THREE OUT OF FIVE MPC MEMBERS NOW CALLING FOR AN INTEREST RATE HIKE

The GBPUSD pair has spiked higher towards the 1.2800 level, as the Bank of England's minutes showed that MPC voting members Michael Saunders, and Ian McCafferty joined Kristin Forbes in calling for an interest rate hike.

The three to five vote in favor of a rate hike has caught many traders by surprise, with the GBPUSD pair expected to weaken into the BoE meeting.  Comments inside the minutes report also noted that UK CPI inflation could exceed 3% by autumn this year, with the low valuation of the British pound referenced as a contributing factor to UK inflationary pressures.

Technically the pair remains bullish, with 1.2740 acting as support on any pullbacks, a loss of the 1.2730 level should provoke further GBPUSD selling towards 1.2710.

In the medium term, GBPUSD buyers remain in control above 1.2730, with the H4 time frame 100 period moving average providing the strongest intraday resistance at 1.2840.

The current intraday low at 1.2690 should provide the strongest medium term support, with a loss of this area likely to trigger a sell-off towards 1.2665 and, also changing the near term GBPUSD bullish sentiment.