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Risk Appetite Pushes the Envelope by: Ashraf Laidi
Posted: January 2, 2009 ET
Comments: 23
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Hi ashraf,

How low will GBP/USD and the GBP/YEN pair go? Some said 1.05 and 85 to a pound by the end of the year. What are your outlook on the matter? Thanks

Andy

Steve,

I hope you took advantage of it. where do you sell? well, that depends if you want to open a short position or take profits? I mentioned in the Intraday update the 100-day MA which has been broken. $1.52 is just a matter time (61.8% retracement). Weekly chart suggests further upside towards $1.5270 at which time time bears can open fresh positions.

Ashraf

Ashraf,

This GBP/USD is unreal!! When and at what price are we going to short GBP/USD? 1.52, target 1.36? Tks for your insight.

Steve, I don't think it will go more than 145. but stay away after 143 ahead of event risk i.e. friday's payrolls. if youy want to play the risk appetite trade jump on AUSDUSD which now broke above 72 cents and could be heading towards 75 given OK retail sales.

Ashraf

Ashraf,

This GBP/JPY is really something, you predict 139 high, now 140+, how high can GBP/JPY goes? Please advise. Thanks.

Sajida you welcome. Ced, and so it was a matter of time before cable hit $1.50.. that's 500 pips in 2 days... I did expect $1.50 this week but not so early.

AUDUSD jist broke 100 day MA. 75 cent possible as wekkly stochs. still bullish.

Ashraf

Thank You Ashraf for taking out time to respond to all our questions and comments.

Ced, BoE decision on Thursday (noon GMT). Cable has above 50% chance of $1.50 after the decision. I dont think we'll reach that high before it. As for rest if quarter, we coudl see another run lower below $1.41 before strong bounce towards $1.58.

Keep watching oil and CADJPY

Ashraf

Hi Ashraf, do you expect 1.50 in cable before or after tomorrows BoE meeting?
What about cable from now until end of Q1?
Thanks

Hi Hamish, yes indeed. Well, I always mentioned that EURUSD will recover towards $1.40 by year-end then drop back down towards low $1.30. I was expecting further upside towards $1.45-46 but that did not happen. keep an eye on AUDUSD breaching the 100 day MA at 92 cents and CADJPY above 80 yen

Ashraf