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GBP/USD higher, eyes on 1.5690

FXStreet (Edinburgh) - The sterling keeps pushing higher on Wednesday, now lifting GBP/USD to the boundaries of 1.5690.

GBP/USD bounces off ytd lows

After hitting multi-month lows in the 1.5590 neighbourhood, the pair sharply rebounded to the current area of 2-day highs near 1.5680 following the hawkish statement from the BoE minutes. Recall that the Committee voted 7-2 to keep rates unchanged and some members argued that risks point to an exhaustion of the slack, giving way to inflationary pressures. The market is now betting the hiking cycle in the UK could start in the last months of next year vs. more optimistic expectations from months back around Q4 2014/Q1 2015.

GBP/USD levels to watch

As of writing the pair is up 0.34% at 1.5684 with the next resistance 1.5737 (high Nov.17) followed by 1.5751 (10-d MA) and finally 1.5769 (Tenkan Sen). On the flip side, a breakdown of 1.5564 (low Sep.6 2013) would aim for 1.5556 (low Sep.4 2013).

FTSE ends four-day rally, Intertek falls 7%

The London’s Ftse index retreated today, ending the four-day winning streak as the heavyweight mining stocks declined due to the weakness in the iron ore prices. The testing firm Intertek tanked after a disappointing trading update.
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