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Weekly Forex Signals
Weak times for sterling keeps dollar efficient
Mon, May 12 2008, 08:50 GMT
by Benny Menashe
| Long signal | Short signal | |
| Buy a break of resistance level at 1.9570 | Sell a break of support level at 1.9435 | |
| GBP/USD | Buy a break of resistance level at 1.9620 | Sell a break of support level at 1.9340 |
| Buy a bounce at 1.9435 | Sell a failure of breaking the resistance 1.9570 |
Fundamental
The Bank of England needs to balance upward pressures on inflation stemming from higher energy costs with downward pressures should the economic slowdown prove prolonged, according to policymaker Andrew Sentance.
In a paper published in the World Economic Journal, Sentance warns that recent shocks from global financial and commodity markets means the economy could be in for "a bumpy ride" in the near term.
The paper is based on an off-the-record lecture Sentance gave in Oxford on Jan. 29 but some of the information has been updated to reflect more recent data. The Bank of England was unable to say when it was updated.
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 signal line, Bollinger gives us a bearish signal by closing the candle below the middle band.
GBP/USD (Daily Chart)
The primary tendency breaks the standard error channel middle line.
GBP/USD (4 Hours Chart)
The medium term breaks the middle band.
GBP/USD (Hourly Chart)
The Minor trend is clear downtrend.
Resistance
1.9570
1.9620
Support
1.9435
1.9340
Published on Mon, May 12 2008, 08:59 GMT
Archive
- U.S. Dollar could recover as GBP lose its momentum
Published On Mon, Jul 14 2008, 10:14 GMT - USD dollar recovering due to "better then expected" data!
Published On Mon, Jul 7 2008, 11:06 GMT - Emergence of yen could weaken the greenback
Published On Mon, Jun 30 2008, 10:03 GMT - U.S. Dollar could drop as euro looking to rebound
Published On Tue, Jun 24 2008, 06:15 GMT - Technically U.S. Dollar could continue strength against the Euro
Published On Tue, Jun 10 2008, 11:49 GMT
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