GBP/USD has broken above 1.59 following unconfirmed reports surrounding ECB bond buying plans. Markets across the board have benefited from some positive risk sentiment following supposedly leaked reports surrounded the ECB’s plan for dealing with the ongoing Eurozone crisis.
The plan is rumored to include a pledge to buy unlimited amounts of 0-3 year maturity Government bonds whilst refraining from publicizing nation specific yield caps. Further details include the bank being able to sell bonds if conditions are not met.
Whilst there is believed to be broad support on the council, the Bundesbank’s Weidmann was the only objector. GBP/USD made a weekly high of 1.5933 following the leak and is currently look for support at 1.5915.
Forex Ticket analysts see the top of the daily range at 1.5935, with a break higher opening up the landscape for a move to test 1.5980.