There has been a LOT of good news for sterling recently. I am also wary that there has been MORE good news for the dollar and although I know a lot of people who are short GBP, I think today may not be a day to be short.
So 9:30AM GMT will be crunch time for GBPUSD, we could see it rally which could push the dollar further down. If we break 1.62720 or thereabouts who knows how high it will go.
Here is the daily chart and we’ve been ranging between 1.588 and 1.672 (ish) my feelings are that we will rally up to 1.6723 fast and then retrace back down if staying in this range. This shows me two things.
1. Sterling is strong vs USD
2. USD because of good news is fighting back hard. USD news had a period over the last month of being bad and is turning a corner. But can GBP rally further up?
As you can see from this monthly chart, GBP is still pretty low. But saying that it will take ages to get up that high again. Probably Jan/Feb when the Debt Ceiling in the US goes through the same thing it has before. I wonder if they will shut down the government?
I am cautious with sterling because there are a few hidden gems, GBP still has huge debts.
I have launched my robot today you can get it at the top of the page. Happy trading everyone.