Will gbp/usd touch 2.0000?

hello guys…

Anybody who trades gbp/usd pair or have experienced about this pair…???
Do u think cable will touch 2.0000 ??

Any ideas wellcome…

Many thks

Last week GBP raised key interest rates by quarter point, unexpectedly. Beating market forecast of unchanged interest rates. So I won’t be surprised to see some upside risk for GBP in the coming week, I am pretty sure that in coming weeks It is possible to test 2.0 usd mark.

The USD also had a lot of upside news that none expected :slight_smile: . I just hope I’m on the right side when/if it does shoot up to 2.0

Forex Calendar @ Calendar

UK CPI figures come out today at 4:30 EST. The BOE had access to these figures prior to their surprise rate hike last week. If the number is above 3.0%, there will probably a sell-off as bulls will see the recent hike as a one off event.

If CPI figures come out below 3.0%, this suggests that the BOE has a longer-term hawkish bias, and this could provide the spark needed to launch a rally towards 2.000.

Indeed. US fundamentals will help in direction trigger on GBPUSD, and they remain strong until now. Perhaps the market is waiting a weak headline from US to launch a dollar sell off.

I believe it will, just not yet. There will be a nice retrace before the big push to 2.00. The bulls need to catch their breath before climbing that mountain.

Hello Everybody!

It would surpass expectations were the exchange rate surpass 2.0; but not completely unforesee-able. Great Britain had severly decreased its reliance on exports, and has. . . like the United States. … focused its efforts. .its GDP. . on services. . . in the manner of Switzerland; and, is the forex capital of the world. All forex trading, ultimately, is hedged upon London forex markets, it seems, as it is during the London session that all major forex volatility takes place.

In my mind, very disparate exhange rates, especially with the U.S., are in Britain’s best interest, as has been indicative by the technicals. She has maintained higher interest rates, which attracts money, and thereby, increases money supply in the U.K., an overabundance of which is easily deterred by using that money to pay foreign debt, with a high interest rate.

The inflow of capital to Britain’s money markets is a greater advantage than the liability of debt, which, as far as current account deficits indicate, she honours readily. This is why inflation is a problem there. . . as consistantly high overnight rates indicate. . . because money is in surplus in her economy.

Its a kind of tight-rope act, as far as GBP/USD goes, and I don’t see it going beyond 2.00. . . U.K. central banks have a different philosophy. . and. .more importantly. . . different objective than BOJ. I believe she’ll preserve a balance most beneficial to her social programmes, yet, not terribly detrimental to private enterprise (high interest rates).

But, the funny thing is. . is that if the EUR maintains strength and credibility. . . the USD is less of a factor. … as far as exports go … because exporting to the Continent is far less expense-detrimental than exporting over-seas. Consequently, the relationship between the USD and GBP could become more analogous to that of USD/JPY.

All this having been said, I’d monitor the 2.00 threshold closely. . if it breaks buy. . if you have candle-stick tops and resistance sell, at close stop-losses.

It is quite possible now :smiley:

Effiong Lang

aha…cable still have the possibilities to reach 2.000 ! Does it it means there is opportunities to keep on eyes in this movements. Maybe we can prepare for shorting this pair after it touched its peak, there must be a major correction after that ?

what do u think guys…:slight_smile: