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The GBP/USD pair shot straight up during the Friday session as the Federal Reserve Chairman Ben Bernanke suggested that the Federal Reserve could begin to buy U.S. Treasury's again, driving yields even lower to drive investors looking for yield and other bonds around the world.
At the same time, Mervyn King the head of the Bank of England has recently stated that monetary policy for the Bank of England is basically where it needs to be. This means that the spread should continue to widen, meaning that money will flow from the United States to the United Kingdom. If we manage to break above the highs from the week, which we see at roughly 1.59, we are more than willing to go long and aim for the 1.63 level based upon the measurement of an ascending triangle that this pair had forged over the summer.
As for selling this pair, we need to drop down below the 1.5650 area in order to show that the momentum has shifted to the downside enough to even consider it.