FxWirePro: GBP/USD hit six month high, scope for further upside

• GBP/USD hit six month high on Thursday as dollar continued to weaken a day after the U.S. ‌Treasury took a surprise measure to arrest a rise in long-term borrowing costs.

• The U.S. Treasury said it would at least double buybacks of longer-dated Treasury securities, pushing the 30-year yield sharply lower after it had climbed to its highest level since 2007 earlier this week

• The 30-year Treasury yield fell sharply after the U.S. Treasury announced plans to at least double purchases of longer-term government bonds, following a rise to its highest since 2007.

• Money-market traders continue to price in one BoE rate hike by year-end, with a second 25-basis-point increase fully priced by April next year.

•   Immediate resistance is located at 1.3664(23.6%fib), any close above will push the pair towards 1.3696(Higher BB)

•  Strong support is seen at 1.3518(38.2%fib) and break below could take the pair towards 1.3468(SMA 20).

  Recommendation: Good to buy  around 1.3600, with stop loss of 1.3530 and target price of 1.3680