The GBP/USD pair fell on the session Friday as the “risk off” trade came back into play. We still are very bullish of the British pound against the US dollar, and think that as long as we are above the 1.60 handle we have a significant chance of going higher. We also feel the same way about the 1.58 handle as well, so it shouldn’t be too concerning until we get below that level. We need to see some type of supportive candle first though in order to go long.
With the Bank of England keeping its rates steady and the Federal Reserve looking to add to quantitative easing as often as it can, this pair should continue much higher over the long run. We think that a significant pullback will attract value investors, and we do plan on joining them when they show up.
Written by FX Empire