GBP/USD holding on below 1.2500 post-Carney

GBP/USD keeps its daily upside well and sound so far today, although the bull run has so far stalled ahead of the critical barrier at 1.2500 the figure.

GBP/USD kept the composure with Carney

The pair remained in the upper-1.2400s following the press conference by Governor Carney, where he insisted that the MPC could tolerate a temporary (and expected) overshooting of its inflation target due to the weaker Sterling, and in this regard he stressed that the central bank is not targeting the exchange rate.

Carney also judged the current monetary policy as ‘right’, while he reiterated that the bank could implement extra easing if needed.

He added that uncertainty and volatility still remain ahead of the start of the Brexit negotiations.

GBP/USD levels to consider

As of writing the pair is gaining 1.22% at 1.2456 facing the next resistance at 1.2494 (spike post-BoE Nov.3) followed by 1.2585 (2-month resistance line) and finally 1.2791 (55-day sma). On the other hand, a breach of 1.2086 (low Oct.11) would open the door for a test of 1.1450 (low post-‘flash crash’ Oct.7).

To learn more about this topic, check our video analysis.