What’s Driving the GBP USD Higher?

U.K. traders came back from holiday and were able to hold the BritishPound higher. Investors are still looking for reasons to buy the Poundother than just a weaker U.S. Dollar.

U.K. traders came back from holiday and were able to hold the British Pound higher. Investors are still looking for reasons to buy the Pound other than just a weaker U.S. Dollar.

I don’t know why the Pound would be appreciating other than speculation that the U.K. economy was going to rebound or just spread adjustments because of the holiday.

Although the current trend is up, gains appear to be labored as investors are still looking for valid reasons to be long the Pound. Longer-term traders still don’t believe that given the current economic conditions in the U.K., this market will be able to sustain recent gains. The major concerns are centering on the ongoing contraction in the economy and a widening budget deficit.

James A. Hyerczyk has been actively involved in the futures markets since 1982. He has worked in various capacities within the futures industry from technical analyst to commodity trading advisor. Using W. D. Gann Theory as his core methodology, Mr. Hyerczyk incorporates combinations of pattern, price and time to develop his daily, weekly and monthly analysis. His firm, J.A.H. Research and Trading publishes The Forex Pattern Price Time Report... More

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