GBP/USD trades up to a session high of 1.3598
The pound has been battered quite heavily post-BOE but is managing to find some footing over the past few sessions, with cable managing to pull up from a low of 1.3425 on Friday last week to 1.3590 currently.
While some of that is helped by a softer dollar, the pound is managing to also find steadier footing for the most part with EUR/GBP failing to breach upside resistance once again:
The rejection at key trendline resistance and the 200-day moving average now sees price slip back below its 100-day moving average of 0.8531 with the near-term chart also hinting at a pushback by sellers (dropping below the 100-hour moving average @ 0.8535).
That mirrors the sentiment in cable seen above with buyers pushing above the 100-hour moving average of 1.3555, thus turning the near-term bias more neutral.
Keeping the focus on the cable chart, price is now inching above the 61.8 retracement level of the recent downswing @ 1.3580 and that opens up room to roam between both the key hourly moving averages (200-hour moving average seen @ 1.3628).
The BOE has made a mess in terms of communication last week but all eyes are on the December meeting now, where they could hike rates following all the talk about doing so over the past few months now.
If they fail to deliver on that though, expect there to be significant ramifications for the pound as the distrust with policymakers will only grow bigger.
But given the latest fiasco, I don't expect the market to price in too heavily a move for next month. That might imply some upside potential for the quid going into the meeting (depending on policymakers' mood) and on the initial headline if they do hike rates.
However, if the BOE sticks with the expected guidance of being "limited and gradual", I can see that as a reason for the market to let off some steam in the short-term.
To keep it brief, the pound is seeing a bit of relief now after the BOE fiasco, but I don't see much implied upside either which way for cable unless the dollar threatens to break lower; no strong arguments for that though at the moment.
