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GB/USD jumps to 1.6330 as time for rate increase 'is getting closer'

FXStreet (San Francisco) - The pound is currently trading higher versus the US dollar as the pair is reacting to the upside following Bank Of England's Carney words that said that the time for interest rate to start to rise 'is getting closer.'

Carney also commented that the UK outlook improved and interest rate case has become more balanced. However, the central banker considers that financial market may be mispricing risk.

The GBP/USD is recovering ground after bounced at 1.6275 amid Carney's words and now it is testing the 200-hour MA at 1.6330. Currently, GBP/USD is trading at 1.6328, still down 0.07% on the day, having posted a daily high at 1.6344 and low at 1.6275.

GBP/USD sentiment

GBP/USD spot is in neutral territory according to the hourly FXStreet OB/OS Index, while the FXStreet Trend Index is slightly bearish.

"The pair lows today bottomed near the 50% of the move up in September at the 1.62867," points out Greg Michalowski from ForexLive. "The low from September 5th was also tested at the 1.62788. This is a good place for the pair to have bottomed."

Michalowski affirms that "the bias is turning around."

Above the 1.6330, next resistances are at 1.6350 and 1.6400. On the downside, 1.6775, 1.6250 and 1.6220 are supports.

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