Dislikedhttp://fxtrade.oanda.com/analysis/fo...r-book#GBP/USD
almost all short on Oanda
but I just read this.
"he British pound was the only gainer against the U.S. dollar, the pair rallied after the Bank of England's minutes, where the committee decided to keep benchmark rates steady, however Adam Posen one of the members had given-up his call for further asset purchases or stimulus, his move followed the recent stability seen in the services and manufacturing sectors, in addition to threats of inflationary pressures over...Ignored
Don't worry, The fear of inflation in the UK has been around for years and they haven't done anything as they are protecting the housing market. They WILL NOT do anything soon (2-3yrs).
Unfortunatley they don't realize we are in a liquidity trap and that they kind of have to let house price fall 20% or so.
But there is no fear of rising interest rates (though base/QE). and so this move will fall when EURUSD falls through 1.30.
The only thing that would be of mild concern would be EURGBP which if it doesn't recover 0.82 we could see 0.8 or lower.
