GBP/USD Forecast September 3, 2012, Technical Analysis

Get Forex buy/sell signals directly to your email and by SMS.
To learn more click here

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.

GBP/USD Forecast September 3, 2012, Technical Analysis

GBP/USD Forecast September 3, 2012, Technical Analysis

Want to read more articles like this one?
Enter your e-mail address and read FX Empire content directly from your inbox.
We value your privacy. Your e-mail address will not be shared.
About: FX Empire Analyst - Christopher Lewis

Christopher is a part of the analysis team. He writes Forex and Commodities technical analyses on daily and weekly basis. Christopher writes his analyses in a professional and yet simple to understand manner. His analyses are available in both text and videos.

  View all of FX Empire Analyst - Christopher Lewis's Articles    
Share Your Thoughts: Post a Comment

Your email address will not be published.