Only one comment worth noting from Carney at the Treasury Select Committee
"The point at which interest rates may begin to rise is moving closer"
A stark reminder that it doesn't matter how you trade, you're still at the mercy of a simple comment
Cable has settled around 100 pips higher at 1.5580 after kissing 1.5603 on the initial run up.
The comment has removed some doubt about rate rises and whether the decision is as finely balanced as various BOE members have previously indicated. The fact that it has come from the head man himself isn't being lost on markets. It's another Mansion House moment from Carney and if we see the pound continue this hefty move up then perhaps we should expect him to back track on the comments to lessen the blow
We popped resistance at 1.5590 but have found it coming in again after moving back below
GBPUSD H4 chart
Through 1.5600 we have the 100 H4 ma at 1.5611 and further resistance at 1.5630 and 1.5650/55
Support is building at 1.5570 and we'll probably see more at 1.5550/55
If this rally is to be sustained then we need to build against these levels and get back over 1.5590 and into 1.5600. If we don't and the 1.5570 & 1.5550 levels break then we'll be on the way back to where we started
US retail sales is the big data on the calendar shortly so the reaction to that will be very important. If a good US number can't sink the pound through those lower levels then the upside beckons