GBPUSD - Coming under first real sign of pressure

The GBPUSD is testing the trend support line from the July13 rally.  We shall see whether there is further impetus in the next couple of days and drive the currency through this support line.  Disappointing economic data in the new year is making investors wary of whether the markets can sustain their recent record highs in the short term, and seeking comfort in 'safe haven' currencies as of late.

GBPUSD - Broken neckline, but waiting for BoE inflation data

Following on from my last post on the 23Oct, we have seen a confirmed rejection of the 1.6250 level, making a 2 month low yesterday, breaking the neckline of the double top chart formation.  I would expect this weakness to persist on the short term and for the pairing to trade back down towards the 1.5700/1.5750 support area, from a technical point of view.

The quarterly BoE inflation is due later today so the market will be very much subdued before this publication at 10.30am GMT.

GBPUSD - At a pivotal point

Well today we're rejecting the 1.6200 level once again, as the currency pairing is really struggling to sustain the gains above this level.  The USD has suffered severe weakness following the failure for the FED to reduce the buying back scheme, contrary to market expectations, and the palaver over the US debt ceiling and government shutdown.  But this begs the question after all these recent setbacks are we due for a recovery??

'Fiscal cliff' is a dirty word once again

The fiscal cliff is rearing its ugly head once again as the Obama administration has warned that the current debt cap could be reached by mid-October, rather than the mid-November originally forecast.  The markets could be in for a bumpy road ahead, or the next couple of months at least, as we'll most likely watch the Democrats vs Republicans play chicken with the US economy once again!

If we looked back how the markets reacted in the run-up to the past votes both in 2011 & 2013 we might have an idea of how people might react in the run-up to the event, as well as looking at what happened straight afterwards.

GBPUSD is on the move after Carney's speech

All eyes were on Carney today delivering his speech at the quarterly inflation report which seemed to inspire some confidence back into the GBP.  We've been watching the 1.5400 level for sometime now and have breached it already today shortly after, but now lets see if it can hold it.  If we can, we should see a rally up to the 1.5600 level.  The Bollinger bands could slow the rate of assent though and its hovering around the top band like a bad smell.  A failure to hold, on the move up could see a correction back down to the 1.5200.