Sterling Still Bearish Trend, But Beware of Correction Potential
AdvertisementIn 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.
February 8, 2010 10:38 pm 
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