GBP/USD bid around 1.3970 on Carney

• GBP lifted on hawkish BoE.
• Cable rose above 1.40 post-BoE.
• BoE could hike earlier than forecasted.

The British Pound remains well bid following the BoE’s interest rate decision on Thursday, with GBP/USD hovering over the 1.3960/70 band as Carney’s speech is under way.

GBP/USD firm on Carney

Cable’s upside remains propped up by a solid message from Governor M.Carney at his press conference today. In fact, Carney expects wage growth to increase amidst tightening labour market, adding that the demand growth is seen surpassing supply growth.

Furthermore, Carney said that the UK economy remains broadly in line with forecasts and inflationary pressures are likely to firm.

Regarding interest rates, Carney stressed that extra rate hikes will be gradual and limited.

GBP/USD levels to consider

As of writing, the pair is gaining 0.71% at 1.3974 facing the next hurdle at 1.4011 (high post-BoE Feb.8) seconded by 1.4075 (high Feb.7) and finally 1.4280 (high Feb.2). On the downside, a breach of 1.3836 (low Feb.6) would aim for 1.3642 (55-day sma) and then 1.3457 (2018 low Jan.11).