US EconomyOne of the biggest drivers of where we are going right now is the US economy, because quite frankly it is much stronger than most others around the world, including the United Kingdom. While the United Kingdom may not be as much trouble as others, the reality is that for some time now, anything not called “the US dollar” has struggled in the Forex world. There are a few outliers such as the Malaysian ringgit, but overall buying US dollars against other currencies has worked out quite nicely. This of course has been no different here, and the fact that money is flying into the United States at the moment it means that US dollars are heavily in demand. While I do believe that a bounce from here could continue, the 1.25 level should end up being a major barrier. We also have the 50 Day EMA hanging around that area as well, so I think is worth noting that the technical traders will be watching that as well. Quite frankly though, I’m looking for the signs of weakness that will undoubtedly show up and stepping on the GBP/USD pair to the downside. I believe that we will revisit the bottom eventually, but the question just remains at this point as to how long it takes to get there.More By This Author:USD/CHF Forecast: USD Continues To Climb Against The Swiss FrancEUR/GBP Forecast: Euro Continues To Stall Against The PoundUSD/JPY Forecast: US Dollar Bounces Around Against The Yen On Tuesday
