1. The trend has turned bullish this week
2. The 20 SMA is supporting the uptrend
3. Economic data has improved
4. BOE’s Carney sounded hawkish
We have been bearish on this pair for quite some time. But, the trend of the last several days has turned bullish and fundamentals are helping its cause. The economic data from the UK has been positive this week and today Mark Carney sounded hawkish as he said that the weakness in Q1 was due to bad weather. So, the BOE will get going with rate hikes. The 20 SMA (grey) is also providing solid support to GBP/USD, pushing the price higher. For this reason, I will wait for a retrace down to the 20 SMA before going long on this pair.
2. The 20 SMA is supporting the uptrend
3. Economic data has improved
4. BOE’s Carney sounded hawkish
We have been bearish on this pair for quite some time. But, the trend of the last several days has turned bullish and fundamentals are helping its cause. The economic data from the UK has been positive this week and today Mark Carney sounded hawkish as he said that the weakness in Q1 was due to bad weather. So, the BOE will get going with rate hikes. The 20 SMA (grey) is also providing solid support to GBP/USD, pushing the price higher. For this reason, I will wait for a retrace down to the 20 SMA before going long on this pair.