The pound has been completely unfazed by the taper.
GBP/USD is back to unchanged after a slide to 1.6333 in early US trading. It’s at virtually the same levels as prior to the Fed taper decision. For comparison:
- EUR/USD -100 pips
- USD/JPY +100 pips
- AUD/USD -30 pips
- USD/CAD +40 pips
Analysts are optimistic about the UK economy next year but there is room for further upside. More and more, traders will begin to treat Europe like they did the US in the post-crisis period.
Technically, cable has traced out a rare horn or broadening formation on the daily chart. That tends to be a continuation pattern, which points higher.
GBPUSD daily
