The biggest news this week and announced after the American Mid-term election, the Federal Reserve delivered slightly more than expected, a 600b program comparing to consensus of 500b in its new quantitative easing policy.
The highly-anticipated Federal announcement sent the US Dollar reeling.
For Sterling, the impressive GBP/USD is further supported by the surprising resilience in 3Q UK GDP reported 2 weeks ago, which led the BOE to refrain from its own QE2 this past week.
On the 1 HTF chart, GBP/USD has been on the uptrend within the ascending channel. The pair was capped by weekly pivot resistance R2 and the psychological level 1.63 .
For the coming week, the sentiment is still of the upward bias with support at 1.609 (31.8%) with immediate resistance at 1.63.
On Monday, I am expecting the GBP/USD to swing further downward with support 1.609.
