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GBP/USD had a fairly quiet session on Tuesday as the market seems a bit “toppy” here. Looking at this recent rally is obvious that the market is overextended. We actually preferred to see a pullback to the 1.60 level that shows support. At that point time we would not hesitate to go long this market.
Central banks are driving this currency pair, and in that sense is the pure rest of the Forex pairs right now. On one hand in England, we have a central bank that is perfectly happy with its monetary policy while the other one in the United States wants to keep easing into the future. This should continue to favor the British pound overall, and lead to higher prices.