The British pound has strengthened against the dollar over these past weeks and has hit the highest level since February. Hampered earlier this year by uncertainty over the elections, the British pound is now starting to show impressive signs of the country’s economic recovery. In fact, the rate of recovery even urged England Deputy Governor John Gieve to advise policy makers not to purchase bonds or loosen monetary policies. Hopefully, this confidence will be reflected in investor forex trading. The GBP/USD forex pair traded at a low of 1.5861 and a high of 1.5968. It is expected that UK Services PMI and Halifax HPI are going to strengthen.

In the US, the main theme of the forex trading community right now is home sales. Pending Home Sales data failed to impress investors on the August 4 trading day. Instead of finally breaking the negative streak and posting the forecast 0.5% improvement, pending home sales came out at -2.6%. As a result, investor confidence waned and the dollar weakened against most of the majors.