British Pound Rally To Accelerate, New Zealand Dollar To Hold Narrow Range

Daily Winners and Losers

Currency	Last	High	Low	Daily Change (pip)	Daily Range (pip)
GBPUSD	1.5714	1.5720	1.5583	115	137

The British Pound extended the advance from earlier this week to reach a fresh monthly high of 1.5718, and the exchange rate may continue to push higher over the next 24 hours of trading as the Bank of England is widely expected to maintain their current policy in January. The GBP/USD remains 115 pips higher on the day after moving 98% of its average true range, and the pair may continue to retrace the decline from the previous month as investors scale back speculation for additional monetary easing. However, if we see the relative strength index hold below 70 throughout the North American trade, a corrective retracement could unfold going into the Asian session as price action continues to hold below the 50-Day moving average at 1.5719. Nevertheless, as the GBP/USD clears the 38.2% Fibonacci retracement from the 2009 low to high around 1.5680-1.5700, the BoE interest rate decision could certainly serve as a catalyst to spark another short-term rally in the exchange rate, and the recent appreciation in the British Pound may accelerate over the coming days as the central bank drops its dovish outlook for future policy.