GBP/USD Sharply Up

GBP/USD saw a massive leap from 1.3104 (today's low) to a high of 1.3470. It's because the Bank of England unexpectedly held its key interest rate after the Brexit after all market participants expected that the rate will be changed.

The pair surged but the bull run was short-lived as the price is getting back well under 1.34 and is currently trading at 1.3378. Although the Sterling returned back into the long-term downward channel, the pair does not enough momentum to continue going North. This suggests that until we have an actual change in fundamentals, price will most likely gravitate towards the 1.32-1.34 level.

Chart: GBP/USD D1