British Pound (GBP) Latest: GBP/USD Edges Back to 1.24, EUR/GBP Stable

The British Pound (GBP) is enjoying a great rebound, as EUR/USD is trading back to a higher level of resistance. On the other hand, GBP/USD remains close to the recent highs.

All these things lead to a British Dollar (USD) to move up against EUR/GBP. Here is what you need to know in order to trade this market. Keep an eye on how the GBP/USD moves.

The Dollar is doing very well in the spot market. On the whole, the USD is trading lower than the EUR and lower than the GBP at the moment. The Yen is having a lot of volatility right now. It is down substantially versus the Dollar.

This means that a US Dollar is cheaper against the British Pound than against the Euro. The impact of the recent ECB stress tests is showing up in the spot market.

The Dollar is basically acting as a safety valve. If the European Central Bank removes the rate from the floor, the USD will come up again. The USD/GBP pair is looking good right now. The currency pair does not look like it is pricing in any huge changes in the near future.

But the Fed is tightening now, so the Dollar should continue to move down as the US Federal funds rate moves higher. We have seen recent EUR/USD volatility coming from some Fed influence. It is time for USD/GBP to start acting like a successful European long. The USD has to move lower to support the GBP.

Here is a look at the current economic environment. The Fed is likely to hike rates in September. The Federal Reserve is also considering it. They are making a big mistake if they do not move rates into the negative territory.

So it is time to get in on this beautiful market at the present time. The currency pair is looking great right now. The EUR/USD will also have a nice day today.

We are probably going to see the Dollar get stronger for the rest of the year. The Fed may take some time before they make a move. The USD/JPY spot market is showing signs of strength.

If they actually move into the negatives, it will create some havoc in the UK as the GDP numbers are released next week. It is not going to be easy to pull that number down. Remember, that is an extremely important GDP number.

The markets are high risk, but there is a lot of upside. The EUR/USD is looking very strong right now. There is a decent chance that the market could become a positive in the short term, but there is a chance that the market could reverse with a bad GDP number.

So, the British Pound is looking very bullish. Keep in mind that GBP/USD is going to open weaker, but it is sure to be stronger in the long term.