Sterling Still Bearish Trend, But Beware of Correction Potential

In currency trading the European session today (08-02), visible through Sterling currency weakening against the U.S. Dollar. Pair GBP / USD when it moves to 1.5568 range.

UK economy actually seemed to improve. BoE (Bank of England) last week has decided to keep interest rates at 0.50% levels and also did not change the program that the asset purchases of £ 200 billion. Several British economic data last week was satisfactory, for example, in the headdress Manufacturing PMI in January 2010 increased to 56.7 from 54.6. But the main drivers today is risk aversion, where the stock market collapse will make the U.S. Dollar continued to prosper.

Sterling has weakened very sharply and has survived in oversold areas within a long time, so the correction potential is high. In technical, GBP / USD is likely to level 1,5800-1,5860 corrected, but correction may take a short and shallow because of the current bearish sentiment is very high.

Euro Weakened, to the Range Lowest in 8 Months on Dollar

In today’s trading was the value of the dollar-euro exchange rate experienced a significant decrease (08.02). European currency was increasingly depressed and weakened to the lowest range in eight months against the dollar, amid speculation that the budget deficit in some EU member states will be expanded.

At the end of last week’s G7 officials have committed to maintain the stimulus policies despite the budget deficit haunted. This condition is feared to further worsen the condition in the state budget, EU member states currently fiscal condition was critical.

Buy EUR/JPY & USD/JPY

Still good moment to buy, now I will share signal EUR/JPY & USD/JPY

• BUY EUR/JPY @ 122.30 TP 123.00,
• BUY USD/JPY @ 89.50 TP 89.80

good luck…

• Status EUR/JPY : closed at TP +70
• Status USD/JPY : closed +20 not touch TP

not bad