Source: ForexYard
Many of you traders often think to yourselves what’s the best way to trade the GBP? It’s true; GBP trading can be tricky at times. However, after reading this article you will feel much more comfortable trading the GBP. Since the start of the recession, the British economy and the Pound have been badly hit. Despite a mini recovery lately, the cable has shown a lot of weakness in the past week.
In early trading today, the GBP is trading higher against a number of its main currency pairs. The EUR/GBP pair is down slightly by 20 pips at 0.8597. The Pound is currently up by 70 pips vs. the U.S. Dollar at 1.6570. Against the Swiss currency, the Pound is showing resilience at the 1.7800 level. These gains are remarkable, as we are only 3 hours into today’s trading.
The bullish GBP this morning may be owed to optimism coming from Germany, in which Prelim GDP figures showed that Europe’s largest economy officially climbed out of recession in the 2nd quarter. It’s important to note that as the world’s leading economies recover from the economic recession, the British Pound climbs with this optimism. Therefore, in the coming months, the GBP may be in a significantly stronger situation, as more positive economic data is published from the leading economies.
Today, there is much data expected from the U.S., led by Retail Sales at 12:30 GMT. This will directly affect the GBP’s strength. Therefore, it’s highly important that you forex traders open your GBP position now, as the trading day gets under way. If you don’t already have an account with ForexYard, I advise you to open one now, if you want to start making big money in the coming hours. For more information about the GBP, you can visit the GBP CAMPAIGN section on our blog.
Forex Market Analysis provided by ForexYard.
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Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.
