Pound surges against the dollar

GBP/USD saw a two-week high today in the wake of some positive comments about the state of the British economy.

Prime Minister David Cameron said that he thought the UK economy was moving in a direction that could allow some tax cuts in due course. GDP figures from the UK this week may well show a growth of 0.6% in the economy.

Mark Carney, the new governor of the Bank of England, gave a major lift to sterling when minutes of the latest policy meeting showed that no member had voted for an increase in QE.

Recent UK data has seemed to indicate that the British economy is doing better than in recent quarters, and this has seen GBP/USD rise above the $1.5000 level. On an hourly chart, the next resistance is just below the $1.5500 area, but good GDP data could see this level broken.

GBP/USD chart

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