FXstreet.com (Jakarta) - The GBP/USD surged on comments by Bank of England Governor Mervyn King that it would be wise to take into account the prospect of higher interest rates. BOE policy makers voted unanimously to keep their assetpurchase program unchanged and maintain the key interest rate at a record low of 0.50%, minutes of the October 7-8 BOE Monetary Policy Committee meeting released today showed.
That no BOE MPC policy member argued for increasing the bond purchasing program, as was the case at the last meeting, supported the pound. After finding support at the 1.58 handle, the GBP/USD has risen for six out of 7 days.
Our short position stopped out today, but we are having a new short position with stop at 1.6750. The GBP/USD has support in the 1.60 area and resistance in the 1.67, said Hans Nilsson, analyst at CMS Forex.