GBPUSD was strong against the US dollar again last week

Aug 31, 2020

The British pound has had a strong week against the US dollar again, breaking above the top of the shooting star from the previous week. This shows that a certain amount of resistance has been broken, and it is probably only a matter of time before we go higher. Ultimately, I do think that this is a market that breaks out, mainly because the Federal Reserve doing absolutely nothing to say the US dollar. In fact, they have just this week essentially announced that the bar to raising interest rates has gotten a bit higher, and therefore a weaker US dollar should be expected over the longer term.