GBP/USD USD recovery problems push vendors to sell pounds ... ...

The British pound ended the week almost unchanged as dovish comments from policy makers was offset by a brightening prospects for the global economy. Anthony Boyajian
04 October 2010 print this article

The British pound ended the week almost unchanged as dovish comments from policy makers was offset by a brightening the Outlook for the global economy.BoE Member Adam Posen budgeted where his vote, may determine that there was a clear need for additional quantitative easing.The strength of the Chinese, and continued (albeit weaker) extensions in the United States and dk manufacturing sectors helped reverse growing pessimism on the back of the QE speech from policy makers. lack of conviction among bulls and bears could signal the potential for a turn of events, where the a catalyst was found on an economic docket full of event risk. BoE rate decision and U.S. non-farm payroll tax report both have the option to set the balance in the greenback's favor over the medium term.

Trading Tactics

A clear downtrend could be the opportunity to sell GBP/USD.

Point the buyer is on the 1.5860; former opposition is to take the profit on the 1.5940; Fibonacci 38.2% stop loss at 1.5800

Selling point is on the 1.5970;previous support is the take profit of 1.5700;Fibonacci 23.6% is the stop loss at 1.5896

Technical:Sterling provides a lower resistance and can continue the minor downtrend.A lower back move could configure a test of 1.5700

To strengthen our analysis; we use many other indicators, starting with the MACD (moving average convergence divergence); MACD crosses the signal line we note down. momentum and RSI (Relative Strength Index) is in a downtrend; stochastic is in an offensive way.

* Analysis is for information purposes only and does not constitute advice in any form. trading of financial products provides a high degree of risk to your capital and it is possible to lose more than your original investment.

By Finotecs professional analyst,

dealingdesk@finotec.com

GBP/USD (per hour chart)

Finotec Analysis Team
04 October 2010
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