How GBPUSD Could End The Week
Bernanke killed the US dollar yesterday. UK GDP met expectations of minimal growth but growth nonetheless when most market participants, myself included, were expecting a contraction. US GDP was less than expected. All this has built a nice fundametal case for cable bulls. And the charts support. Today’s session sees a nice correction in the $GBPUSD which is fully expected and healthy...
EURGBP Ahead of UK GDP
While most of the market is looking ahead to the US FOMC meeting, sterling traders await the UK GDP number which will be released ahead of the Fed announcement. Today’s UK CBI manufacturing number was dismal and indicates to market participants that the British economy may have been weaker than the market expects in the 1st quarter of this year. After languishing during Monday’s...
GBPUSD In The Week Ahead April 24, 2011
The GBPUSD closed last week above 1.6500 indicating that its breakout to 18-month highs at 1.6600 is legitimately bullish. The GBPUSD daily chart shows the breakout rally had no retracement. Therefore, I do expect the pair to retrace to 1.6400 before heading higher towards 1.6750. Only a daily close above 1.6575 after Monday’s trading session will change this short-term bias. That did not...
Euro Bulls Won't Go Away
Yesterday, Finnish elections and Greece soured the euro and supported the EURGBP’s descent to 0.8750. An expected correction after the failure at the 0.8920 highs, the pair remains bullish as it finds support at 0.8750 and begins to rally off the lows at 0.8740. The EURGBP pair found support once again at the 61.8% Fibonacci level from the weekly chart at 0.8735. Despite the...
Can The USD Garner More Strength?
The GBPUSD was already on the backfoot as the pair continued to fail at 1.6400/30 as we noted yesterday. The pair fell on technicals to 1.6250 but it was the news of US downgrade that sent the pair through the 1.6240 support to make new lows at 1.6160. Now that targets were met, let’s reasses the pair to see what cable could be offering next. Price fell between the 50% and 61.8% Fibonacci...
The Week Ahead April 17 2011
The EURGBP looks like further declines. Even though it managed to end the week above 0.8940/50 previous resistance, it 1) respected the 50% Fibonacci level on the bounce after the breakdown from 0.8950 highs and 2) made lower highs on each bounce out of the 0.8810s lows. A break below 0.8800 targets 0.8750. A hold above 0.8800 targets 0.8900. The GBPUSD also looks like it has put in a top at...
The Week Ahead April 11 2011
Though cable behaved very bullish with every dip being bought ahead of the 1.6250 large quarter point, GBPUSD continued to find resistance at the 1.6427, the 38.2% Fibonacci retracement level on the monthly chart. Thanks to @pdtpatrick for sharing! If cable continues to fail at 1.6430, then price will fall back to 1.6250. A break below this level, targets 1.6100 support and then 1.6000. The...
The Week Ahead April 3, 2011
Technicals The GBPUSD started last week on a bearish note when it broke below the 1.6000 major whole number level. Since this level was the 61.8% Fibonacci level AND cable had always respected this Fibonacci level, I thought bears were in full force. Nope. The GBPUSD ended the week extremely bullish with its close above 1.6100. As the market opens, watch how price behaves at 1.6100. If price...