Intraday Market Thoughts

Archived IMT (2010.09.23)

by Ashraf Laidi
Sep 23, 2010 18:39

GBPUSD HITS 5-WEEK HIGHS at $1.5741, coinciding with the 61.8% retracement of the 1.6002-1.5296 decline. Daily sochastics show the possibility of further gains to $1.5900. Note that the $1.57 was a major LOW in Oct 2009 and a HIGH on December 2008. Medium term resistance stands at the $1.5990 trendline resistance extending from the $1.6877 high in Nov 2009. When I said BoE QE will most likely follow in the footsteps of the Fed, the time lag could take anywhere between 1-3 months. Downside risks for GBPUSD remain, but particularly in GBPJPY and GBPCAD. (See this Video for more detail ) The rally in EURGBP is a manifestation of the lingering doubts and weakness in sterling. The rally in stocks has certainly helped GBP. Keep an eye on 1130 level in SP500 & wjether we see a close above $1.5700 in NY.


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