GBP/USD Forecast September 10, 2012, Technical Analysis

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By FX Empire Analyst - Christopher Lewis
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GBP/USD rose during the Friday session as the jobs number in the United States disappointed. With the anemic growth in the month of August, it appears that the Federal Reserve will have to embark on more monetary easing. With the new quantitative easing, this should continue to widen the gap in interest rate differential between these two currencies and more importantly, the countries bonds.

The Bank of England has recently suggested that they are very happy with monetary policy currently, and as such we should continue to see a positive yield in Britain over the United States. This should continue to drive this currency pair higher, and technically we have broken out of an ascending triangle that measured to the 1.63 level anyway. On pullbacks, we are buying this pair.

GBP/USD Forecast September 10, 2012, Technical Analysis

GBP/USD Forecast September 10, 2012, Technical Analysis

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