FXstreet.com (San Francisco) - GBP/USD continues to target higher levels this Friday, having peaked at 1.5893 from 1.5742 at the start of the Asian session, last at 1.5875, gaining nearly 1% on the day. To the upside, resistance is noted at 1.5926 (8 Feb high), while the pairing may encounter support at 1.5850 (10 Feb high).
On the fundamental front, “The Bank of England is expected to expand its quantitative easing (QE) program with another £50 billion in asset purchases, an outcome that may prove to weigh on the British Pound as traders size up the exchange-rate implications of further dilution of the money supply,” explains Ilya Spivak, Currency Strategist at DailyFX. “Economists’ median expectations for UK economic growth in 2012 have been in precipitous decline for some time, so the risk of overshooting with too much stimulus at this point is arguably far smaller than that of being too timid.”
On the fundamental front, “The Bank of England is expected to expand its quantitative easing (QE) program with another £50 billion in asset purchases, an outcome that may prove to weigh on the British Pound as traders size up the exchange-rate implications of further dilution of the money supply,” explains Ilya Spivak, Currency Strategist at DailyFX. “Economists’ median expectations for UK economic growth in 2012 have been in precipitous decline for some time, so the risk of overshooting with too much stimulus at this point is arguably far smaller than that of being too timid.”
