Bank of England

21-Jan-2014,  GMT 12:00 a.m.

GBP/USD rallied on recent retail sales data and now pair is ranging on the top of this upward shot. Cable seems to target last year’s high at 1.6526, where Credit Agricole sees tough resistance level.

“Strong December retail sales data (2.6% vs. 0.5% expected) supported pound despite softer manufacturing and service data as well as industrial production dynamics.”

GBP/USD: Awaiting BoE minutes and jobs data.
GBP/USD 1H chart.
Click to enlarge!

At this moment investors are awaiting tomorrow’s Bank of England minutes and job market readings.

“Jobs data and the Bank of England MPC minutes will be on tap on Wednesday – says Mitul Kotecha, Head of FX Strategy in Credit Agricole – providing more direction for the currency.”

Mr. Kotecha also sees minutes as surprising because of probable change in tone of the forward guidance.

According to last CA recommendation pound should gain support in coming days with limited risk to the downside because of neutral positioning.

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