GBP/USD 16-20 Jan 2012
Quantitative easing (QE) is a monetary policy used by the Bank to stimulate the national economy when conventional monetary policy is judged to be ineffective. This is apparently soon be applied by the BOE (Bank of England). Implementing QE-effect of this is happening devaluation of the currency, and of course this leads to weakening of the currency concerned.
From the observation of market sentiment this week, the Pounds seemed in danger of falling associated negative sentiment that swept the swift close partners EURO. In addition, the resilience shown by the fundamental dollar last week will be a resistance that is not easy to penetrate.
After falling more than 150 points last week to the lowest point of 1.5232 pounds quickly perform the recovery. But unfortunately the recovery was not able to penetrate the Upper Resistance. Lows this week still seemed lower than this week, and this suggests the trend continues.
Im Bearish For GBP / USD
From some basic technical and fundamental considerations and issues associated with the development of the U.S., I think to take a position Bearish GBP / USD for the week.