Weekly Forex Signals
Pound Dropped Against US Dollar on Interest Rate Outlook!
Mon, Nov 19 2007, 10:42 GMT
by Benny Menashe
Finotec Group Inc. | View company's profile
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| Buy a break of resistance level at 2.0845 | Sell a break of support level at 2.0425 |
| Buy a break of resistance level at 2.0620 | Sell a break of support level at 2.0350 |
| Buy a bounce at 2.0350 | Sell a failure of breaking the resistance 2.0620 |
Fundamental
The pound dropped against all of the 16 most-active currencies in the past week after the central bank suggested in its quarterly economic outlook it may lower its benchmark rate from a six-year high before the end of the year.
The pound declined against the dollar to $2.0506, from $2.0547 at the end of last week and traded near a 4 1/2-year low against the euro as a report showed house prices dropped in October, strengthening speculation the Bank of England will lower interest rates to bolster the economy.
Technical
The Sterling may continue the downtrend against the US dollar; according to technical charts the market is in a bearish direction with confirmation of many indicators like RSI, which is in a downtrend, MACD breaks the zero line and Bollinger bands (on price) gives us a bearish signal by closing the candle below the middle band.
Primary Tendency (Daily Chart)
The primary tendency is in a uptrend that started from 2 April 2007

Secondary Tendency (Four Hour Chart)
The pair reached 2.1161

Minor Tendency (Hourly Chart)
The Minor trend is in a downtrend

Resistance
2.0845
2.0620
Support
2.0420
2.0350
Published on
Mon, Nov 19 2007, 10:53 GMT
Archive
- USD slows down as EUR looks to accelerate
Published On Mon, Mar 15 2010, 07:57 GMT
- Greenback inactivity helps Euro rise in style
Published On Mon, Mar 8 2010, 11:57 GMT
- Momentum holds USD while Euro looks to recover
Published On Mon, Mar 1 2010, 11:59 GMT
- Euro slows down as USD continue to accelerate
Published On Mon, Feb 22 2010, 11:04 GMT
- Euro in trouble as U.S. dollar continues to gain strength
Published On Tue, Feb 16 2010, 12:12 GMT
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FINOTEC Trading’s Market Commentaries are provided for informational purposes only. The information contained within these reports is gathered from reputable news sources and not intended as investment advice. FINOTEC Trading assumes no responsibility or liability from gains or losses incurred by the information herein.
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