| GBP USD 04-02-10 |
GBPUSD
Yesterday GBPUSD gave us the tantalizing rally we had been expecting all week, and those alert enough to take advantage of the bounce to 1.6069 were rapidly rewarded with a GBP collapse all the way back down below 1.5900. Easier than taking candy from a baby.
With the outcome of the BoE meeting today by no means clear cut, we prefer to take at least half our profits off the table at this point; this morning’s continuation of the sell-off (to 1.5866 lows so far) is within 15 pips of the Monday lows, and there is likely to be considerable support further down at 1.5833 coinciding with the major 30 Dec low and lower bound of the 2 week downtrend channel.
Any rallies are likely to be capped once more by 1.6080, with the 50-day moving average resistance now coming in at 1.6125 which should attract further selling interest. If the BoE surprises the market with an extension to QE and 1.5833 support breaks down, thereafter look for the pair to target 1.5707 (13 Oct 09 low).
Yesterday GBPUSD gave us the tantalizing rally we had been expecting all week, and those alert enough to take advantage of the bounce to 1.6069 were rapidly rewarded with a GBP collapse all the way back down below 1.5900. Easier than taking candy from a baby.
With the outcome of the BoE meeting today by no means clear cut, we prefer to take at least half our profits off the table at this point; this morning’s continuation of the sell-off (to 1.5866 lows so far) is within 15 pips of the Monday lows, and there is likely to be considerable support further down at 1.5833 coinciding with the major 30 Dec low and lower bound of the 2 week downtrend channel.
Any rallies are likely to be capped once more by 1.6080, with the 50-day moving average resistance now coming in at 1.6125 which should attract further selling interest. If the BoE surprises the market with an extension to QE and 1.5833 support breaks down, thereafter look for the pair to target 1.5707 (13 Oct 09 low).
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