GBP/USD likely to rise towards 1.5484 – FXStreet

FXStreet (Barcelona) - According to FXStreet Editor and Analyst, Omkar Godbole, the GBP/USD pair is likely to rise towards the immediate resistance at 1.5484 levels, above which the pair might see 1.55+ levels.

Key Quotes

“The pair rose more than 200-pips to finish the previous session at 1.5417 levels after the Bank of England, in its Quarterly Inflation Report, titled towards a hawkish side while expressing the probability of an interest rate hike in 2016.”

“The sharp gains have provided an inverted head and shoulder breakout with the neckline support at 1.5379. Interestingly, the pair dipped to 1.5379 levels today, only to recover to trade at 1.5416 levels.”

“With no major economic data due out of the UK today, the pair is likely to keep moving towards the immediate resistance seen at 1.5484 levels.”

“Moreover, the pair could rise above 1.55 levels today during the North American session if the February’s University of Michigan gauge of US consumer confidence declines from the 11-year high of 98.1 seen in the previous month.”

“Overall, the sentiment remains in favor the British Pound.”

“The bearish Price-RSI divergence on the hourly charts may push the pair back towards 1.5379 levels. However, the pair is likely to be bought on dips so long as it trades above 1.5379 levels.”

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