The pair GBP/USD bounced on the Forex following the meeting of the BoE.
The BoE kept its monetary policy unchanged with key interest rate to 0.25% and asset purchases monthly 435 bn £.
The vote was 7-2 as expected. The two members who had voted for a rate hike in immediate have maintained their point of view, so that the new member has voted as the majority.
GBP/USD fell on the Forex on these ads, falling back to the support of 1.3150, but then rebounded at the reading of the Minutes.
Indeed, the minutes show that the MPC believes that an early withdrawal of stimulus will likely be appropriate in » the coming months «.
The members of the MPC think that the rate hikes will be faster than what the markets anticipate currently, if the economy follows the projections in the quarterly inflation report of the month of August.
We also note that the first data of the T3 are more robust, that the expectations of the Committee, and that the recent developments enhance the chances of a faster recovery.
The BoE also points out that wage growth is showing signs of recovery, even though they still remain modest.
Finally, the Committee admits that there are still considerable risks for the economic outlook.
Overall, the Minutes show, therefore, a BoE pretty optimistic on the economy, and who seems to be prepared to raise rates by the end of the year, where at the beginning of the next year.
These elements support the GBP on the Forex, with GBP/USD back above the 1.33 and that will test the recent highs to 1.3328.
Above, we have then the resistance of 1.3340, before the 1.3375 and 1.3400 and later he closes.
In the short term, unless the Dollar vienna to stem the upward movement, GBP/USD seems to be able to push further its increase.
The media come to 1.3285, 1.3250, 1.3200 and 1.3150.
We will follow now the CPI US 14: 30 to see if the movement can continue in the intraday or risk of return.
The pair GBP/USD is currently trading at 1.3312 on the Forex.
Chart GBP/USD H1