The British government creates positive business. At the end of last week, GBP / USD continued to attack new highs, as the British government did not make any serious mistakes. Advertisement Image Strong Dollar Swings Make Very Profitable Trades Move Now! , GBP/USD will start trading next week with a positive dose of speculative fever hovering over the landscape. The UK government managed to avoid major policy changes last week and it now looks like the current new leadership may last more than a month. While this is certainly sarcastic, it does highlight the rather incredible stretch that GBP/USDS has seen over the last couple of months, with a rather negative media profile hovering over the British government. GBP/USD entered the weekend at , indicating that it may hold its short-term highs near the 1.16100 ratio, far from the lower depths of recent weeks. Before traders get too bullish on GBP/USD, they should note that the UK government is not out of the woods yet and the public trusts the new leadership to deliver solid economic results. Good economic performance may present challenges in the UK and elsewhere in the medium term. GBP/USD broke out on the belief that it is significantly oversold. However, Forex financial institutions, especially between major currency pairs such as GBP / USD, often place long-term bets. Yes, businesses have to make daily transactions where the value of a currency pair is often thought of, but not as a guiding „light” because bills need to be paid. Retailers often have to make short-term bets, and those with deeper pockets can continue to trade for a while. But financial houses also know what is coming in the next six months and tend to position themselves based on what they think is the direction. Although speculation is not spoken aloud in financial houses, banks and investment firms are constantly betting on the prospects of their behavior. If GBP / USD manages to hold the 1.16,000 mark earlier this week and shows that buyers remain in the trading waters, this could trigger a speculative plot that will see the pair continue to challenge the highs seen last week. Traders should not be too ambitious as fundamentals remain and the UK has many economic clouds on the horizon. If the 1.16500 level comes within sight some traders may see this as too high considering the past week of results. The coming week of trading for the GBP/USD will likely remain Volatile Traders need to be ready for a rather turbulent mix of short term positive sentiment and prepare for those who want to continue to point fingers and say the GBP/USD should remain under pressure. The U.K government will try to deliver more calm and has postponed it next large fiscal policy statement until the middle of November, but that could change quickly if politicians combat each other for the microphone. GBP/USD Weekly Outlook: Speculative price range for GBP/USD is 1.13990 to 1.18100 Speculators should monitor the GBP/USD carefully. The forex pair has certainly seen a solid dose of buying emerge in the past week and a half. However, reversals to the downside are also likely to be seen as filtering reactions and natural cycles in weekly trading. If GBP/USD breaks below 1.15800, this could cause anxiety among those looking for higher territory and force more selling. A move below the 1.15,000 level would certainly raise some fears and some traders may think that 1.1 50 should be followed. Optimistic traders should be careful. Although the trend often proves to be a speculator’s friend, the golden goose needs a rest from time to time. And this trend up has not been a long one, in fact it really only started on the 21st of October, this after the GBP/USD flirted with the 1.10700 mark briefly. If the GBP/USD can hit the 1.17000 ratio higher, this would be quite an accomplishment, a rise to 1.18000 may raise suspicions things are far too positive however. Traders should be willing to cash in profits if they materialize, and not let them vanish while wagering the GBP/USD is going to produce a sustained climb. It actually might, but the ride is likely to be bumpy short term.

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