GBP/USD is stopped at the 1.5935 major support line. Intraday bias remains on the downside, as long as the 1.6440 minor resistance line is not broken. On the downside, the currency pair price action has dropped to the 12 weeks low and is stopped at the 1.5935 major support line. Wave 3 was expected to be at the 1.6056 support, but obviously that’s not the case.
GBP/USD drops from the 1.6260 high to the 1.6110 low, after the BOE Monetary Policy Committee voted 2-0-6 to keep the interest rate unchanged. Intraday bias remains on the downside, as long as the 1.6545 minor resistance line is not broken. On the downside, if the 1.6076 low is broken it will continue the bearish momentum and target the 1.6056/1.5935 major support lines.
GBP/USD came very close of breaking the 1.6146 low, as BOE voted 6-3 to hold the interest rate at 0.5%. Intraday bias remains on the downside, as long as the 1.6515 minor resistance line is not broken. On the downside, if the 1.6146 low is broken it will continue the bearish sentiment and target the the 1.6090 major support line.
GBP USD is trying to maintain the bullish sentiment by trading above the 1.6100 level. Intraday bias remains on the upside, as long as the 1.6029 minor support line is not broken. On the downside, if the 1.6029 minor support line is broken it will slightly reverse the bullish bias to bearish momentum and target the 1.5962 major support line.
Another breakout alert Forex peeps! But this time it’s for the British pound! Chart-wise, the Cable or the GBPUSD pair has recently broken out from a cup and handle continuation pattern. A cup and handle pattern, as the name suggests, takes the shape of a cup (a bowl-like price action) with a small handle to its left.
The Economist has done an excellent job by bringing together top global financial executives, policymakers, global regulators and opinion leaders to discuss and debate proposed guidelines for the financial community, seeking to bridge fundamental financial issues with macroeconomic and geopolitical viewpoints.
The GBP USD is under pressure overnight following a strong rise on Wednesday. The reversal of the previous day’s rally is a sign that the action was most likely short-covering rather than new buying. Traders were reacting to the Bank of England minutes which showed a three-way split as to whether the central bank should provide additional stimulus to the economy.
U.S. equity markets are trading flat in limited trading despite rallies in the Euro and British Pound. Earlier in the week, strength in both of these markets triggered rallies in stocks as traders demanded risky assets.
The U.S. Dollar is trading weaker against most majors this morning ahead of this afternoon’s Fed announcement. Volume is expected to be light, but traders should expect increased volatility because of thin trading conditions.
Now that the S&P rallied over 60 pct since last March 2009, and pretty much all other markets except housing and real estate have also rallied (anything connected to financial markets that received the half of the several $trillion of US and other central bank emergency money infusions beginning big around March 2009) it begs the question when there will be a correction. Or a crash.
