Forex Trading

The GBP/USD has settled into a short-term range following volatility generated by dovish comments from BoE Governor King and a dismal mortgage approval report. The central bank continues to leave the door open for additional quantitative easing at a time when its counterparts are taking measures to remove liquidity from their markets. Next week’s rate decision looms large as the MPC could increase their asset purchase program which may keep traders on the sidelines until the event risk reveals the future course of monetary policy. Staunch support below combined with the condensed price action makes the pair an attractive target for scalpers.