GBPUSD—faltering

The pound is faltering after hitting 1.5382 yesterday. From the fundamental side, people are muttering that yesterday's unemployment numbers aren't as good as they look and maybe it just sunk in that BOE has no idea what's going on—I say that based on the quote in the statement yesterday ("Some members considered the upside risks to inflation had increased slightly over the month; others felt that the balance of risks had not changed materially.")

The pair has pulled back to a low of 1.5258 so far this morning. This was a prior support area and served to support the pound again. My long position from 1.5138 is still in play. However, if the pair corrected further I'd be out and there are stop orders below 1.52 no doubt so a break below there wouldn't be good.

Support is at 1.5258, 1.5240, 1.5210, 1.5174, 1.4978, 1.4961 and 1.4873. Resistance is at 1.5332, 1.5382, 1.5520, 1.5415, and 1.5816.

Here's the one-hour chart:












© Dianne Fecteau, 2010. No part of this material may be reproduced in any form, or referred to in any other publication, without the express written permission of the author.

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