GBP/USD Consolidates

GBP/USD reacted sharply to the upside last week when the news broke out that the BoE is keeping the rates unchanged at 0.50%. The pair reached a low of 1.3103 on Thursday last week and in the same day moved some 120 pips higher.

The highest high was seen the next day when the Sterling went to 1.3316 and since then the pair has been depreciating.

Currently, GBP/USD is trading at 1.3211 as speech of BoE Gov Carney is minutes away. It could be expected that the pair could swing both ends as we are still unsure whether the BoE would present a dovish or a hawkish outlook on the UK economy.

Chart: GBP/USD H4