By James McKee
Despite the current dismal economic conditions elsewhere in the world England certainly seems to be making headway. Bank of England interventions have lead to increased GDP and a more prosperous outlook for England as a whole. The GBP|USD pair in the Forex Currency Exchange has certainly been making gains, a Fibonacci retracement of 23.6% is in the works according to some economists. Many predict that the Bank of England will soon change its dovish tone and that the English economy will continue to prosper through the near future.
Most leading economists believe that the Bank of England will continue its current policies into the foreseeable future in light of the fact that England’s economy is slowly improving. Many however believe that policies will change in an effort to coax further and faster progress. It has certainly been the case in the past that central banks of western countries do not know when to quit and to this end the “natural” rise and fall in the value of currency is rarely seen. Thus we as traders are left with analyzing and interpreting the actions of central banks and other financial policy makers.
Many are taking a keen interest in the GBP|USD pair because the correction of the USD has already begun in the Forex market despite an elevated US stock market. This correction is projected to come about in the upcoming months while the outlook on the pound is optimistic so once again betting against the dollar seems to be the best strategy here. Stay informed about any events that might take place regarding both the Federal Reserve bank and the Bank of England to be aware of any changes on the horizon. While this pair won’t take you to the moon in the near future it just may yield some healthy profit in the coming weeks.
Author is a Forex trader and financial analyst residing in Denver, Colorado. To stay up to date on all the latest developments in the financial world and beyond be sure to check out the forex exchange rates regularly.