- The long-term trend (weekly chart) in GBP / USD is down
- Prices broke under the neckline of the Head-Shoulders pattern in the daily chary
- Prices moved sideways since 28.09.09
The GBP/USD prices stabilised in the 1.5850 - 1.6130 range after the neckline of the Head-Shoulders pattern was broken downwards. The pair stayed in that range since 28.09.09, however, a breakout is possible today.
GBP/USD, weekly
GBP/USD, daily
The Bank of England Monetary Policy Committee Decision on interest rates and the Asset Purchasing Target are due at 11.00 GMT today. This event can act as a catalyst and move the pair over 100 points in either direction within the first hour of trading. In the past a further extension into the initial direction was often recorded. By trading with the trend profitable trades were feasible in the past.
In case the pair breaks out of the 1.5850 - 1.6130 range further potential opens up over the next week. If the 1.6130 resistance falls, upward potential to 1.6400 opens up. In case of a break below the support at 1.5850 a fall 1.53 is possible.
Recent UK fundamentals and the comments by BOE Governor Mervyn King in regards to the economic advantages of a weak GBP might suggest a surprise to the downsize. E.g. by increasing the target for the asset purchasing scheme. Of cause that's pure speculation.
This is such a great resource that you are providing and you give it away for free.I love seeing
ReplyDeletewebsites that understand the value of providing a quality resource for free.It’s the old what goes around comes around routine. Big thanks for the useful info.
Stock Tips
Thanks for this wonderful post. Admiring the time and effort you put into your blog and detailed information you offer. Nice post thanks from Mcx Tips
ReplyDelete