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The GBP/USD pair rose during the last five sessions as the breakout continues to push the British pound higher. The 1.60 level was approached and touched once the anemic employment number came out on Friday from the United States. With this in mind, it looks more and more likely that the Federal Reserve is going to ease its monetary policy. In contrast, the Bank of England has already stated that it feels very comfortable with what he considers to be a very appropriate monetary policy. In other words, the interest rate differential between the two currencies is going to continue to stay wide.
In fact, the British pound is probably one of the strongest major currencies right now and as such we certainly don't want to bet against it. With the Federal Reserve getting ready to be eases monetary policy again, the US dollar will continue to weaken. Because of this, we expect to see a retest of the highs at the 1.63 level.