Forex Pros – The pound rose to a four-day high against the broadly weaker U.S. dollar on Wednesday, ahead of the release of the Bank of England’s April policy meeting minutes later in the day.
GBP/USD hit 1.6382 during European morning trade, the pair’s highest since April 14; the pair subsequently consolidated at 1.6376, gaining 0.38%.
Cable was likely to find support at 1.6229, Tuesday’s low and resistance at 1.6425, the high of April 11 and a 15-month high.
The greenback remained under pressure after Monday’s warning by Standard & Poor’s that it will cut the Unites States triple A credit rating unless the White House and Congress can reduce the huge budget deficit within two years.
The BoE minutes were not expected to show a shift in the Monetary Policy Committee members’ voting, but would indicate if those who voted to leave rates unchanged have become more concerned about future inflation or the growth outlook.
Meanwhile, the pound was down against the euro, with EUR/GBP rising 0.33% to hit 0.8814.
Also Wednesday, the U.S. was to publish industry data on existing home sales.
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