GBP/USD pressured ahead of the BoE inflation report
February 9, 2010 - 6:57 am by Juan P. Bejarano · Leave a Comment
Daily Fundamentals:
The pair is mixed and consolidates between 1.5662 and 1.5540 area, but weakness seems to be gaining strength.
Reports published by the National Statistics showed trade balance figures expand their deficit to -7.3B from -6.8B.
The Sterling should remain under pressure ahead of the BoE inflation report tomorrow with any rallies likely to be met by selling pressure.
GBP/USD currently trades around the 1.5570 area down from a session high of 1.5647. Since the pair could continue to trade within the consolidation area we are attempting a long order at 1.5550 w/stops at 1.5525. Target at 1.5570 and 1.5650. (order is valid prior to the NY open bell)
Trend:
Weekly : Bearish
Daily: Bearish
Hourly: Bearish
Support & Resistance:
From current levels, 1.5570, the pair finds initial resistance at 1.5660, followed by 1.5740, and 1.5805.
Key support to watch is the 1.5537 where a break of such would open targets to the 1.5450 level, followed by 1.5400 and 1.5350.
Strategy:
Limit Sell @ 1.5800 Targets: T1 1.5770 – T2 1.5350 Risk 1.5870
* After 20 pips profit move stop to entry, take profit at will. Comments will follow if outlook changes.
DISCLAMER: The above post is for information only. Before making your investment decisions please acknowledge that the information provided herein should not be taken without your own individual assessment and extensive investigation, it should not be preempted as your own trading strategies, investment advice and/or trading portfolio.
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