The GBP/USD pair rose during the session as the US dollar sold off in general. The Federal Reserve announced larger than expected and longer than expected quantitative easing measures during the Thursday session, and as such we have broken well above the 1.61 handle. This market is obviously bullish, and we do believe that the 1.60 level is a “floor” in the marketplace currently.
Going forward, we buy pullbacks in this market as we think the up trend will continue much higher. Based upon the ascending triangle that we formed last summer, the projection was for a move to the 1.63 level. We think this is pretty much a given at this point in time, and would not be surprised to see the market even higher than that. Obviously, we are not selling the cable pair right now.
Written by FX Empire