•  
  • New York 13:18
  • London 17:18
  • Barcelona 18:18
  • Tokyo 02:18
  • Sydney 04:18
  • SignUp | Login

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


Vote:

0

0

Long signalShort signal
Buy a break of resistance level at 2.0845Sell a break of support level at 2.0425
GBP/USDBuy a break of resistance level at 2.0620Sell a break of support level at 2.0350
Buy a bounce at 2.0350Sell 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

Primary Tendency

Secondary Tendency (Four Hour Chart)
The pair reached 2.1161

Secondry Tendency

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

Minor Tendency


Resistance
2.0845
2.0620

Support
2.0420
2.0350


Archive


Legal disclaimer and risk disclosure

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.
Vote:

0

0


Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.

Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. FXstreet.com has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.

Any opinions, news, research, analyses, prices or other information contained on this website, by FXstreet.com, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXstreet.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

©2010 "FXstreet.com. The Forex Market" All Rights Reserved.