Hawkish BOE comments add to dollar woe as GBP/USD extends gains

The weaker dollar following the US CPI report was one thing, but that was added too after the US data by comments from the Bank of England Chief economist Huw Pill. Pill has said; that the BOE may have to tighten more to get inflation  back inside the 2% target range. It is these comments that is fuelling further gains in the GBP/USD. That has now just edged above an important level, at 1.2439. That is where the 200 day moving average is in residence right now. The high seen so far has been set at 1.2448. However, that is not necessarily a green light for more immediate upside, but perhaps a daily close above this level might be more important if seen. Now just beyond 1.2439 we have another level which is a Fibonacci correction level and that is at 1.2459. This is 38.2% of the fall from 1.3142 to the low at 1.2037. The pound also garnering support because, if the BOE chief economist is right, then the UK CPI data might not be so benign as that seen from the US today. So, does Huw Pill know something we do not? We will find out soon, but meantime the Pound think it knows the answer. The GBP/USD is just now trading at 1.2442