The British pound has spiked towards the 1.4000 level against the U.S dollar, following bullish comments on upcoming rates hikes inside the Bank of England’s Monetary Policy Statement. The GBPUSD pair spiked over one-hundred and thirty pips higher, after BOE policy makers said they may need to raise UK interest rates sooner than expected in 2018. Going forward, the 1.4000 level remains pivotal for further upside gains for the pair, whilst the 1.3938 level is now acting as former resistance turned major support.
The GBPUSD pair is likely to see further buying interest above the 1.4000 level, upside targets remain 1.4058 and 1.4100.
Should price-action on the GBPUSD pair start to move below the 1.3938 level, we may see a correction back towards the 1.3900 and 1.3870 levels.
