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Sterling looks good to me
Sterling looks perky now. News BOE will likely lower interest rates if the pound strenghtens would normally cause Sterling to trade lower but it hasn't.
Since Feb 2002 when EURO started its 15 month upmove it has gone 86 to 117 or 36%. Sterling has gone 146 to 164 or 12%.
My gut feeling is GBPUSD has room to go to 170 or 175.
With the EMU referrendum in June the next few weeks will be volatile in Sterling.
I recommend buying Sterling here at 1.6440 with a stop at 1.6240.
This is quite a bit away but if EURUSD has a correction down to 1.1550 I believe the Pound will stay above our stop level. If EURUSD goes below 1.1550 we become vulnerable to getting stopped out at 1.6240 but I think the EURGBP will be lower if EURUSD goes down so perhaps EURUSD will need to break 1.1500 for our stop to get triggered.
Your thoughts would be appreciated.
Trade well. JIMMY
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