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Cable Rallies to 5-Week High After BOE Carney Comments

Posted by Chris Advincula on Jun 13, 2014 9:21:00 AM

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Chart: WorldWideMarkets Ahpha Trader

Sterling is firm at the 1.6995 - 1.6950 range in Europe holding on to its gains afer the rally in the prior Asian session following the bullish comments from the Bank of England Governor Mark Carney. Carney said that interest rates may rise sooner than markets currently expected, as he addressed London's financial community at Thursday's annual Mansion House dinner.

The 14-day moving average rallied from the supported 1.6820 level to meet resistance at 1.6975. Euro-sterling also sent cable higher as it fell from 0.8055 to 0.7975 (-80 pips) which failed to break the option barrier at 0.8050 and ran stops at 0.8025 on the way down.

Although sterling is favored and appears to be in a bullish trend, some analysts say that gains may be limited beyond 1.7125. The pound also gained from buying participants who were inspired more by the more positive news from the UK housing sector. (RICS was 57 in May from an upward revision of of Arpril to 55 from 52).




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