The u.s. dollar dropped on all fronts after the speech of Yellen. The pair GBP/USD rose above the 1.2850, reaching a maximum of 3 days.
There are No surprises from Yellen
The speech of Yellen, it was defined as «boring» by some market analysts. Not addressed the potential path of monetary policy and was mainly about the financial crisis, the regulation and improvement since then. Yellen offered no clues to future policy, however, the dollar fell. The dollar index fell from 93.20 to 92.76, reaching the lowest since August 4.
GBP/USD bankruptcy above 1.2850
The fall of the us currency went up from 1.2820 to 1.2873, reaching a new maximum of three days. The couple broke a strong resistance at 1.2840 and up to now it is holding above 1.2850 which is also a critical technical level. A consolidation around the current levels could open the doors to new profits, and a test of 1.2900.
Next resistance could be seen at 1.2915/20 (maximum of 18 and 21 August). If the pair is rejected and falls below 1.2840, it is likely that the bearish pressure will increase sharply.