British Pound Continues Breakout Moves

Published 07/03/2014, 10:36 AM

Here is a very quick chart note on the British pound. I think the technicals are getting pretty interesting on the currency and major moves seem underway.

At the time of writing, the British pound is making a major breakout against the Japanese yen (GBP/JPY) on the heels of on-going robust economic news from United Kingdom.

wedging” higher against the yen
a major breakout to multi-year highs seems underway

The European Central Bank (ECB) made another policy decision and firmed its determination to keep monetary policy as loose as necessary. This is now in stark contrast to the Bank of England’s “threats” that the first rate hike could come sooner than earlier anticipated by markets. The path of least resistance is thus down and to the right for some time to come…

ECB greases the EUR/GBP skid

Bbut how long can Carney take it?


Source: FreeStockCharts.com

In trading, I sold out all my long positions on the British pound and look to buy the next dips in the coming weeks.

Be careful out there!

Full disclosure: no positions

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