GBP-zar is the currency pair in free trade that has consistently been one of the strongest and most reliable pairs. The mix of British pound (GBP) and the American dollar (USD) makes this a powerful currency pair that many traders have used for quite a while now. The mix of trading strength and profitability makes it one of the top currency pairs in forex that people have been using for quite some time now. Here are some of the notable things that you might find interesting about this particular currency pair.
First, it has a very strong history as compared to other currency pairs. It started off with a streak of bullishness that lasted for about half a year. Then, the trend line for this particular currency pair reversed and turned into a downtrend. The decline resulted in the reduction of the British Pound’s value against the dollar. This was later followed by a recovery of the pound value against the currencies. All in all, the recovery of the value of the British Pound against other currencies was swift and marked.
Second, the current uptrend for gbpzar is a unique pattern unlike any other currency pairs. The recent uptrend is characterized by a downward sloping trend line that is parallel to the current financial spread on the pairs. This shows that the price of the British Pound is now slowly and steadily moving upward while the price of other currencies are following the upward sloping trend line.
Third, the current downtrend is also very distinct. In this case, the market participants are speculating on the possible reversal of this uptrend. As of the moment, the market participants are anticipating the over the base movement of GBP-zar. The upward trend is being supported by an economic stimulus program in the UK and low interest rates in the US. On the other hand, the downward movement of this currency pair is being facilitated by low interest rates in the US and doubts about the British government’s ability to manage the debt crisis.
The direction of the market trend lines is highly dependent on the direction of domestic interest rates and government policies. As of today, the market expects that the over the base movement of GBP-zar will continue until the end of the year. Then, the market will start to reverse towards the seller’s side of the trend line. The traders can expect that the GBP Croatian will experience an uptrend in the coming months.
Last but not least, the strength of the markets in GBP-CZs and GBP-BG will be determined by the central bank of these respective currency pairs. In the past, the Bank of England has indicated that it may intervene in the market to support the domestic interest rate by buying sterling. It is up to you to decide whether you want to trade this currency pair at its highest or lowest price.
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