Why is GBP/USD not moving higher with the UK economy?

Everything points to a stronger pound - in the news at least. But here, John C Burford explains why the charts paint a very different picture.

I thought I would cover this market today, because its recent action starkly illustrates an important principle: contrary to popular opinion, the news does not drive the markets. Yet to some people, this notion is preposterous.

If you follow financial reports in the mainstream media and on many blogs, you will be forgiven for believing that the news dominates. There is no shortage of verbiage all kinds of topics. In fact, you could spend your whole life reading financial material, and still not cover it all.

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John is is a British-born lapsed PhD physicist, who previously worked for Nasa on the Mars exploration team. He is a former commodity trading advisor with the US Commodities Futures Trading Commission, and worked in a boutique futures house in California in the 1980s.

 

He was a partner in one of the first futures newsletter advisory services, based in Washington DC, specialising in pork bellies and currencies. John is primarily a chart-reading trader, having cut his trading teeth in the days before PCs.

 

As well as his work in the financial world, he has launched, run and sold several 'real' businesses producing 'real' products.