Pound Continues To Sink As More QE Expected
I added fresh short GBP/USD positions at 1.5500 and today’s break below support at 1.5344-50.0% Fibo justifies the position and may warrant additional positions. I am a little reluctant with the BoE rate decision looming. The central bank has continued to hint at the possibility of adding to their asset purchase program which could come next week. Sterling should continue to trade lower as markets continue to price in the quantitative easing. However, non-action from policy makers sets the pair up for a sharp reversal which may lead me to take profits beforehand.
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