The Pound made a new 5 year high on Thursday but as the trading week was trading to a close, Sterling was pushed back below the 1.7050 figure. The sharp selloff on Friday may lead to a short term move lower in the currency pair. Here is the price action in gbp/usd during the past few days.
I think the move higher will continue, even if we get a temporary retracement going forward. I expect the 2009 high at 1.7050 to give way in the coming month. Above 1.7050, the next important resistance stands…