GBP/USD fades the spike to 1.3290

The Sterling keeps the firm fashion at the beginning of the week, taking GBP/USD to the current 1.3270/75 band.

GBP/USD bid after Weale’s comments

Spot attempted a bull run to the vicinity of 1.3300 the figure after MPC member M.Weale said there is no urgency to act on rates following the recent ‘Brexit’ vote.

Furthermore, Weale suggested that the BoE should wait for further information before incurring in extra easing (via rate cuts) and that there are still uncertainties after the UK has decided not to be a member of the EU anymore.

In the meantime, the pair remains on the right footing today, extending the upside momentum from last week’s amidst a continuation of the risk-on sentiment.

GBP/USD levels to consider

As of writing the pair is gaining 0.71% at 1.3276 facing the next resistance at 1.3481 (high Jul.15) followed by 1.3535 (high Jun.29) and finally 1.3646 (38.2% Fibo of 1.5020-1.2796). On the flip side, a breakdown of 1.3101 (low Jul.14) would expose 1.2849 (low Jul.11) and then 1.2797 (20916 low Jul.6).