Howdy Folks,

Sunday came faster than I expected it would, it seems like I missed a day somehow. I hope you had a great weekend and are looking forward to trading this week! Sunday is my time to ramble thoughts about the upcoming GBP/USD trading week. I believe the story line for this trading week will be whether or not traders believe economic recovery is truly on its way or not. Last week ended with a nice rally but fundamental data was mixed all week long. It wasn’t until Ben “I can move the market with my flashy smile” Bernanke commented “the prospects for the return to growth appear good” which gave traders some hope on the back of stronger than expected home sales. One should expect some positive comments from the nations top banker considering he was “working” along with other central bankers in beautiful Jackson Hole, Wyoming. How could anyone be negative in such a beautiful place? All kidding aside it will be interesting to see whether or not the mood continues to be happy-go-lucky into Monday. If risk aversion continues to melt the Dollar may see continued selling across most of the major pairs. I’ll just have to wait and see how sentiment feels after the New York close on Monday. I typically don’t take trades on Sunday.

Technically speaking, GBP/USD is still trading within an ascending channel on the daily chart but has consolidated along the bottom half. Viewing this from the weekly chart it would appear this currency pair is ready to head higher but the daily chart is clearly readying a breakout which could go either direction. Expectations for GDP data, Durable Goods and Personal Spending could fuel a breakout so stay tuned for more thoughts as the week progresses.

Best of luck this week, I’ll be back with more tomorrow night!

Ryan